MAG continues to grow but warns of ongoing Brexit uncertainty

posted on 4th July 2019 by Justin Burns
MAG continues to grow but warns of ongoing Brexit uncertainty

Manchester Airports Group (MAG) has reported that its revenue and earnings both increased in the last financial year from 1 April 2018 to 31 March 2019 but warned that the ongoing Brexit uncertainty is having an impact.

Revenue across its three airports Manchester Airport, London Stansted Airport and East Midlands Airport was £889.4 million in the period, up 8.7 per cent on the £818.1 million in the previous 12 months.

Earnings before interest, tax, depreciation and amortization (EBITDA) increased to £379.9 million, a rise of 5.9 per cent in the previous 12 months.

MAG said continuing Brexit-related uncertainty is creating a “more challenging” outlook for the group in terms of economic growth.

EMA saw tonnage increase to 366,815 tonnes during the last financial year. MAG  is enlarging the cargo apron, alongside a significant expansion of UPS’s facilities, which will enable it to play an even bigger role as the UK’s leading airport for cargo aircraft.

To maximise its air freight potential, this year its partner UPS announced a £114 million development project, which will increase the number of cargo aircraft the airport is able to host and will double the overall size of the cargo operation at East Midlands.

MAG said its property division had a strong year, as has the Airport City Manchester Joint Venture, in which MAG plays a key role. Office space across the development was fully let at the end of the year and Amazon agreed to acquire a further two acres of land at Airport City South.

MAG chief executive officer, Charlie Cornish, said: MAG continues to play a vital role in connecting different parts of the country to key global markets. The investments we are making in our facilities will allow them to play an even bigger role in the years to come. We are matching that capital investment with a focus on the experience that every one of our passengers has as they travel through our terminals, something we are looking to make as smooth as possible.

By improving international connectivity to different regions, MAG airports will do far more to secure economic growth and rebalancing across the UK than a third runway at Heathrow will. The Government must now show an active commitment to supporting the future growth of airports like Manchester, London Stansted and East Midlands.

“To achieve this, the Government must support the delivery of better transport links to airports across the country as part of an integrated plan to grow global connections from the North, Midlands and the South.

“We welcome the Government and EU’s commitment to maintaining vital air connectivity between the UK and Europe even in the event of a ‘no deal’ Brexit, something which allows passengers to book and travel with confidence.

“But continued uncertainty about Brexit will ultimately act as a drag on the economy and damage consumer confidence. It is vital that the Government finds a political solution to Brexit over the coming months to enable the country to move forward and to rebuild consumer confidence.”