Aviation News

CPH: The year has started with strong growth in the first quarter

A 6.4% increase in passenger numbers gave Copenhagen Airports A/S (CPH) a strong Q1 2012 performance. The improvement in passenger numbers was generated by increased numbers of international and transfer passengers supporting CPH’s new World Class Hub strategy. The Copenhagen Airport shopping centre also reported continuing growth. CPH retains its forecast for the full year of continuing growth in the total number of passengers.

The 6.4% increase in passenger numbers meant that CPH’s revenue rose by 6.5% in Q1 2012. Profit before tax, when excluding for one-off items rose 21.2% to DKK 196.8 million.

The aeronautical segment of CPH’s business continued to grow, especially transfer traffic, which performed strongly in Q1 with a 12.4% increase in passenger numbers. The increase in transfer traffic was primarily driven by routes from Norway, Poland, Germany, the Baltic States and, not least, Finland, where SAS-owned Blue1 has changed its traffic program so that its passengers now transfer at Copenhagen Airport instead of at Helsinki. There are also more Norwegian passengers transferring at Copenhagen Airport; in the first quarter, the airline recorded an increase of more than 200 per cent in the number of transfer passengers.

New strategy strengthens hub
“Our performance is satisfactory, and we are pleased to see that our World Class Hub strategy is already producing results. We are working to strengthen our position as the northern European hub, and we are therefore very pleased to see the strong growth in transfer traffic,” said Thomas Woldbye, CEO of Copenhagen Airports A/S, and he continues: “Another strategic focus is to increase accessibility to the growth markets of the world, especially the BRIC countries, and the new routes and frequencies to Shanghai, Moscow and Kaliningrad are therefore important to the airport as well as to Denmark.”

Revenue from the aeronautic segment rose 7.4% in Q1 2012.

Continued growth at the shopping centre
The non-aeronautical part of the business also showed growth of 5.4%. Sales at the Copenhagen Airport shopping centre was up 16.0% due to changes in the shop and brand mix, fulfilling passengers requirements, resulting in an increase in the spend per passenger.

“In a time when the retail trade in the rest of the economy is under pressure, we are very pleased to see that the shops in our shopping centre are reporting significant revenue growth. This confirms that operating a shop at Copenhagen Airport is attractive, further supported by the fact that we currently have no shop vacancies” said Thomas Woldbye.

Plans for new restaurants and cafés
The revenue growth was highest in the specialty shops, one of the reasons being that Copenhagen Airport is currently in the process of upgrading a number of restaurants and cafés. In 2012, a Le Sommelier Bistro, a MASH steakhouse and two Food Market delis will open at Copenhagen Airport, continuing the successful relaunch of the shopping centre during 2010.

Parking revenue rose 2.4%. The increase was favourably affected by the growth in locally departing passengers, which was partly offset by lower average parking prices.

After the end of the first quarter, Copenhagen Airport consolidated its position as a northern European traffic hub, when for the second straight year CPH was rated best airport in northern Europe in the annual Skytrax passenger satisfaction survey covering 388 airports worldwide. This year, twelve million passengers were surveyed.

Outlook for 2012
Based on the expected traffic program for 2012, the total number of passengers is expected to increase. Traffic, however, could be adversely impacted by the continuing economic uncertainty in the Eurozone and any closure of routes due to airline reductions.

The increase in passenger numbers is expected to have a positive impact on total revenue. Operating costs are expected to be higher than in 2011, primarily due to the expected increase in passenger numbers, cost inflation and depreciation charges as a result of the higher level of investment with a focus on continuing growth. Overall, a higher total profit before tax, when excluding one-off items, is expected for 2012.

Under the charges agreement, CPH must invest an average of DKK 500 million annually, but expects to invest significantly more in 2012. CPH will also be investing in other commercial projects for the benefit of airlines and passengers.

Source: Copenhagen Airports

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