Manchester Airport boosts Cheshire East coffers

New routes and record passenger numbers has boosted profits triggering a £25m payout for Cheshire East and its other local authority shareholders.

In the six months to the end of September MAG, which owns Manchester, Stansted, East Midlands and Bournemouth Airports, saw underlying earnings (EBITDA) surge 10.4% to £201.9m, while revenues rose 5.7% to £445.5m. Operating profit (before significant items) increased 15.7% to £138.2m.

Across the group, MAG’s passenger numbers rose 5.7% to a record  29.7 million, driven by the introduction of 31 new routes and particularly strong performances by Manchester and Stansted, the country’s third and fourth-largest airports.

In line with its strong results and confidence in future prospects,  MAG hiked its shareholder dividend by 25% to £38.6m, meaning the 10 local authorities of Greater Manchester, which own the group along with an Australian investor, will share around £25m this month. Manchester, which owns 35.5% will get £13.7m and the other nine councils around £1.25m each.

MAG chief executive Charlie Cornish said: “MAG airports continue to be true growth engines for their regions, employing thousands of people and generating significant economic activity in the wider economy.

“They also continue to offer choice and competition for passengers, providing the direct services that passengers want to see from their local airport. A network of competing airports across the country provides the best solution for customers and also contributes hugely to the growth of UK PLC.  At a time when other airports are running out of capacity, our airports provide a solution to the UK’s aviation needs both now and in the future.

“We have confidence in the group’s long term prospects and I look forward to a successful second half of the year.”

Ken O’Toole, Manchester Airport MD, added: “The stronger MAG is, the more it will be able to benefit our shareholder and the wider region.

“It has been a really positive year for Manchester Airport, which has contributed to a strong set of half year results for MAG. It was great to be able to announce last month that passenger numbers reached an all-time high of 23 million and we are set to see even more growth in 2016, as direct long haul services to destinations including Los Angeles, Boston and Beijing get underway.

“It is also pleasing to see MAG pay its highest ever interim dividend of £38.6m Due to our ownership structure, this goes right back into the heart of Greater Manchester and ensures that our local community truly benefits from the success of Manchester Airport.”

MAG said its recently-launched US business had won a second contract to develop a passenger lounge at Oakland Airport in San Francisco Bay.