CPH: Passenger record and strong financial performance
Source: Copenhagen Airports
Passenger growth of 5.7% secured Copenhagen Airports A/S (CPH) strong performance in 2011. Revenue grew as a result of the growth in passenger numbers and increased spend per passenger at the shopping centre. Excluding one-off items, profit after tax rose 1.6%. The continuing growth on intercontinental routes strengthened Copenhagen airport's position as the hub of Northern Europe. CPH expects passenger numbers to continue to grow in 2012.
The total number of passengers at Copenhagen Airport increased to 22.7 million in 2011, representing a year-on-year growth of 5.7%. The passenger number was the highest in the history of the airport. The performance was at the high end of expectations as reported revenue increased by 3.2% to DKK 3,343.8 million, primarily due to the increase in passenger numbers. By comparison, performance in 2010 was affected by higher income from the divested operation in Mexico and by the termination of a long-term rental contract with SAS Cargo. Moreover, the ash cloud reduced revenue in 2010. Adjusted for this and one-off items, the underlying revenue was up 7.1%. When excluding one-off items, profit after tax rose 1.6% to DKK 775.8 million.
"CPH's financial statements show strong performance. The increase in passenger numbers boosted revenue and, excluding one-off items, profit after tax also increased," said Thomas Woldbye, CEO of Copenhagen Airports A/S.
Aeronautical revenue increased by 8.5% to DKK 1,835.9 million, primarily because of the rise in passenger numbers and the price index adjustment of traffic charges made on 1 April 2011. Thanks to the strengthening of intercontinental traffic through new routes to Bahrain, Dubai and Phuket and upgrades of a number of other overseas routes, the number of intercontinental passengers was up by 8.5% in 2011, and intercontinental passengers accounted for 8.4% of the total number of passengers.
Low-cost growth and CPH Go behind international award
The total number of low-cost passengers at Copenhagen Airport was 6.2% higher than in 2010. Low-cost carriers had a market share of 17.9% at the end of 2011, equivalent to the market share held in 2010.
"Exactly 13 months after the opening of Copenhagen Airport's low-cost pier, CPH Go, the number of passengers to have used the pier reached 1 million. CPH Go was also the main reason that Copenhagen Airport was rated the world's best low-cost airport in September 2011 at the World Low Cost Airline Congress. easyJet has announced new routes to Lisbon and Madrid, respectively, so the growth at CPH Go is set to continue in 2012,” said Thomas Woldbye.
Shopping centre growth
Non-aeronautical revenue was down by 1.8% to DKK 1,484.3 million, primarily due to the termination of a rental contract with SAS Cargo in 2010. This was partly offset by an increase in shopping centre and parking revenues, mainly attributable to higher passenger numbers and a rise in the spend per passenger.
New strategy and large investments
CPH now launches its new strategy for the next five years: World Class Hub. It is an ambitious growth strategy designed to enhance Copenhagen Airport's position as the main gateway to northern Europe. In the new strategy CPH focuses on its customers and their needs – both airlines and passengers – because good operational conditions for the airlines and high passenger satisfaction are two of the main drivers for continued growth. In close cooperation with the airlines, CPH works to become a world class hub, where facilities, logistics and total cost of operations make it easy to operate effectively and where it is attractive to concentrate one's activities.
"Our collaboration with SAS to move the feeder traffic of their Finnish subsidiary, Blue1, from Helsinki to Copenhagen is a good example showing that, together with our business partners, we are able to strengthen the hub, for the benefit of both Danish and international travellers," said Thomas Woldbye.
In the coming years, CPH will invest significant sums in new capacity and even better facilities for passengers and airlines, providing optimal conditions for the ever increasing number of passengers.
Outlook for 2012
Based on the expected traffic programme for 2012, the total number of passengers is expected to increase. The full-year effect of the new routes added in 2011 will have a positive impact on performance in 2012 together with expected new routes. 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 also expected to be higher than in 2011, primarily due to the expected increase in passenger numbers and cost inflation. 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, which will lead to a corresponding increase in depreciation charges. In addition, financial costs are expected to be lower in 2012 than in 2011. Overall, a higher total profit before tax, when excluding one-off items, is expected for 2012.
Financial statements of the parent company