Copenhagen Airport (CPH) has released its annual report for 2015, showing record passenger numbers and solid earnings for the year.
The airport set a new passenger record for the fifth successive year in 2015, with more than 26.6 million passengers.
CPH reports that international passenger growth was a primary driver for growth, with the introduction of new long-haul routes, strengthening its position as an international hub in Northern Europe and intensifying its competition with the major European airports.
Copenhagen Airport was recognised by airlines for its route development strategy last year, winning world’s best airport acquiring new air routes for the second time in three years during the World Routes aviation conference in Durban.
“Another record seemed unlikely in the first half of the year, but a strong second half saw us surge past 26 million passengers for the very first time,” said Copenhagen Airport’s CEO Thomas Woldbye.
“Passengers in the second half were also more satisfied with our service offering than ever before, leading to increased revenue from the airport’s shopping centre. We anticipate further growth in 2016 as we continue our expansion towards 40 million passengers a year,” Woldbye continued.
With rising passenger numbers, the airport’s aeronautical revenue increased by 5.1%.
The airport also reported increases in non-aeronautical revenue of 4.9%.
Total revenue climbed by 5%—DKK 194.4 million (£20.7m/€26.06m/$28.32m)—to DKK 4,061.9 million (£479m/€616m/$670m).
Investing in Growth
CPH reports that it will gradually expand and improve services to add routes and accommodate passengers.
During 2015, CPH invested DKK 1,148.4 million (£119.75m/€153.97m/$167.28m) in airport development projects.
“We expanded and refurbished the passenger areas in Terminal 2, and we added two lanes to the central security check to deal with a growing number of passengers. Pier C was extended by 6,000 square metres and one of the main runways widened to accommodate a rising number of long-haul aircraft, including the world’s largest passenger plane, the Airbus 380,” said Thomas Woldbye, who also expects comparable high levels of investment during 2016.
Passenger Experience Improvements
To help position itself as the leading hub of Northern Europe, CPH is also committed to improving the passenger experience.
“Our ambition is to make passengers’ time at Copenhagen Airport the best part of the journey, so we strive constantly to ensure the best possible experience for all passengers,” says Woldbye. “2015 saw us improving the central security check and adding new stores and restaurants that have been warmly welcomed by passengers.”
The airport reports a retail revenue increase of 7.7% during 2015. Parking revenue also grew by 3.8%.
Investing in the Future
Copenhagen Airport detailed its investment plan priorities for 2016:
- two new lanes at the central security check
- expansion of passport control in its new Pier C with self-service automation for EU citizens
- bus gates in Pier C
- an upgrade of the baggage reclaim area
- a new drop-off solution in P4
CPH says it will also invest in “other non-aeronautical projects benefiting airlines and passengers alike.”
During 2016 CPH expects to add new routes with a corresponding increase in passenger numbers.
The airport warns that increasing competition, and possible cost-cutting by the airlines as well as a potential global economic slowdown could have a negative effect on traffic growth in 2016, but expects higher passenger numbers will have a positive impact on the year’s results overall.
CPH also says it expects higher operating expenses than during 2015, as a result of serving higher numbers of passengers, increasing security requirements, and inflation. It plans to offset these higher operating costs with a focus on efficiencies.
Profit before tax in 2016 is expected to be between DKK 1,450.0 million (£150,8m/€194,4m/$211m) and DKK 1,550.0 million (£161m/€207,8m/$225,7m), excluding one-off items. EBITDA excluding one-off items is expected to be up on 2015.