Passenger numbers at Copenhagen Airport grew by 11.4% in Q1 2010, resulting in a 7.4% increase in revenue to DKK 704 million. Profit before tax increased to DKK 171 million, mainly due to the increased revenue, lower operating costs, partly due to the restructuring costs recognised in Q1 2009, and fewer provisions as compared with Q1 2009.
“We have seen a strong increase in passengers travelling in Q1. Domestic passengers grew by almost 30% as a result of airline competition, and international traffic grew, benefiting from improved load factors and passenger numbers from carriers including Norwegian, Cimber Sterling and SAS. The 5.2% increase in transfer passengers reflects the successful strategic partnership with SAS to reduce the minimum connection time and improve our performance as the gateway to Scandinavia, said Brian Petersen, CEO of Copenhagen Airports.
Growing commercial revenue
As a consequence of the growth in passenger numbers, commercial revenue, especially from tax-free sales increased in Q1 2010. Car parking also benefited due to the growing number of domestic passengers and the fact that business passengers have returned.
“As we have recently launched a simpler concept for the more than 10,000 parking spaces at Copenhagen Airport, we expect continuing growth in the parking business. In future, there will only be three price categories, and the relationship between price and product will be clearer. It will be simpler for customers to choose the airport parking product that suits individual requirements, said Petersen.
Operating costs were lower than in Q1 2009, whilst external costs increased as a result of the severe snow disruption and the associated resources required to manage the situation.
Continued high level of capital expenditure
CPH complies with the 5½-year charges agreement entered into with the airlines in the autumn of 2009. Under the agreement, CPH is committed to invest more than DKK 2.6 billion in expanding and improving the infrastructure of Copenhagen Airport, of which approximately DKK 500 million will be invested in 2010. This will be complemented by the construction of the CPH Swift low-cost pier as well as a number of other commercial investments in 2010.
Impact of Icelandic volcano
Despite the volcanic eruption in Iceland, which closed Copenhagen Airport for more than five days in April, CPH still expects passenger numbers to increase for the full year, and this is expected to have a positive effect on revenues, whilst earnings excluding one-off items are expected to be slightly below the 2009 level due to higher depreciation charges in 2010.
“The Icelandic volcanic eruption which paralysed most European air traffic has naturally drained resources in an already squeezed travel and aviation industry. CPH is in close contact with the relevant authorities and the airlines to assist passengers and support airlines operational needs even after the airport has reopened. Mitigation actions were implemented during the closure to reduce any financial impact. said Brian Petersen.
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