DENMARK. Copenhagen Airports has reported a +5.2% year-on-year increase in concession revenue from its shopping centre in the first nine months of 2019.
There was overall +2% growth in non-aeronautical revenue for the period.
One of the main drivers of growth was the opening of a new 4,000sq m post-security retail and food court area last year between Pier A and Pier B in Terminal 2. Copenhagen Airports said an improved shopping and brand mix also contributed to growth.
Gebr Heinemann is the core duty free and travel retailer at Copenhagen Airport. Revenue at the tax free shop was in line with 2018, Copenhagen Airports said.
Food & beverage revenue was up +10%, largely as a result of the addition of ten new units. New speciality stores were also added as part of the expansion, which resulted in a +15% increase in this segment compared to last year.
Revenue from parking fell -3.9%, mainly due to a decrease in locally departing passengers. Other non-aeronautical revenue grew by +6.3%, mainly because of an increase in the number of car rentals.
Revenue growth in the non-aeronautical sector contrasts with a small -0.1% decline in passenger traffic in the nine-month period, although Copenhagen Airports noted 2018 had been a record year. Traffic at Copenhagen Airport was impacted by the bankruptcies of Primera Air and Wow Air, the SAS pilot’s strike and Norwegian’s strategic adjustments of its traffic programme.
Excluding the extraordinary items, underlying growth in departing passenger numbers of approximately +2% was recorded. The number of passengers using Copenhagen Airport as a hub on their way to other destinations increased by +2.3%.
Copenhagen Airports recorded an overall profit before tax of DKK1,0741.1 million for the first nine months of 2019, down -10% on the same period of 2018. The performance was based on revenue of DKK3,298.9 million, representing a -2.9% decrease.
The decline in revenue and profit before tax mainly resulted from the reduction in airport charges introduced gradually since 1 April 2018, the airport operator said.
“We are currently investing billions of kroner in developing the airport of the future – to be in tune with passenger demand for a good travel experience and airlines’ space requirements for their new and more energy-efficient aircraft,” commented Copenhagen Airports CEO Thomas Woldbye.
“In 2019 alone, we expect to invest more than DKK2 billion, which will help ensure that we maintain our position as one of the world’s most efficient and attractive airports in every respect.”
Original source - The Moodie Davitt Report