MUNICH AIRPORT REPORTS RECORD TRAFFIC FIGURES AND A HEALTHY PROFIT
Munich Airport today reported that it handled an all-time high of 46.3 million passengers (+3.8%) and made a net profit of €150 million in 2018.
Operating company FMG’s EBITDA also surged to a record €535 million while cash flow from operations was up €80 million to €465 million.
With equity of over €2.2 billion, the equity ratio, at 41.3%, exceeded 40% for the first time.
Dr Michael Kerkloh, president and CEO of Munich Airport, said: “By making substantial investments in our infrastructure, we are ensuring that Munich Airport – despite rising passenger numbers – will be able to offer the travellers of tomorrow the same impressive service standards and pleasant airport experience.
“In that regard, the most important project now underway is without doubt the extension and modernisation of Terminal 1.”
Work has begun on the first preparatory measures for €455 million major project at the heart of Munich Airport. On completion, the planned new pier will be linked to the existing A and B modules and will extend more than 320 metres into the western apron.
It will have docking space for up to 12 aircraft and is scheduled to go into operation in 2023.
And Terminal 1 is not the only construction site at Munich Airport, as a total of 14 expansion projects are currently at various stages of completion on the airport campus.
They range from new parking facilities to the extension of the S-Bahn rail tunnel for the future rail link to Erding and various road projects.
According to the airport, the biggest factor behind the dynamic traffic trend at Munich Airport in 2018 was the increase in passenger numbers on international routes.
The main growth driver was the intercontinental segment, which experienced a 7% increase, thanks in large part to Lufthansa’s decision to station five Airbus A380 aircraft in Munich.
Also contributing to the renewal of the long-haul fleet in Munich was the Airbus A350. By July of this year, Lufthansa will have 15 of these fuel-saving and extremely quiet widebody jets stationed in Munich.
The strong demand in the intercontinental segment, says FMG, contributed to yet another increase in the average aircraft load factor at the Bavarian hub: With an average of 77.5% of all seats filled on arriving and departing flights, the airport achieved the highest quota in its history.
The robust traffic trend showed no sign of slowing down through the first two-and-a-half months of the current operating year, with the number of take-offs and landings around 3% higher year-on-year, and passenger numbers up by a very healthy 4%.
“Looking ahead, however, we must note that the projected increases in demand at Munich Airport over the coming decade can be met only with a corresponding expansion in supply,” noted Kerkloh.
“The moratorium on the construction of the third runway has capped our growth opportunities for the time being.
“Against that backdrop, our main task in the coming years will be to maintain the range and quality of services at our airport under the conditions imposed by an increasingly challenging capacity crunch.
“The key will be to enhance the hub function and in particular to further reinforce Munich Airport’s role as a gateway to intercontinental travel.”