Munich Airport reports net profit of €150m for 2018

posted on 20th March 2019 by Justin Burns
Munich Airport reports net profit of €150m for 2018

Munich Airport has reported a net profit of €150 million for 2018 and said that passenger traffic helped drive the figures as it increased by 3.8 per cent to 46.3 million.

The resulting gains in aviation and non-aviation revenues had a decisive impact on the increase in group sales, which – based on preliminary figures – topped the €1.5 billion mark for the first time. EBITDA surged to a new all-time high of €535 million.

Munich Airport president and chief executive officer, Michael Kerkloh said commercial success is an essential building block for a future-ready and competitive airport.

He added: “By making substantial investments in our infrastructure, we are ensuring that Munich Airport – despite rising passenger numbers – will be able to offer the travelers 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 modernization of Terminal 1.”

Work has begun on the first preparatory measures for this 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. The new pier is scheduled to go into operation in 2023. The airport’s operator the FMG Group has budgeted €455 million euros for this expansion project.

Terminal 1 is not the only construction site at Munich Airport. At present, a total of 14 expansion projects are at various stages of completion on the airport campus.

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 saw a seven per cent 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 robust traffic trend showed no sign of slowing down through the first two-and-a-half months of 2019, with the number of take-offs and landings around three per cent higher year-on-year, and passenger numbers up by four per cent.

Kerkloh added: “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. The moratorium on the construction of the third runway has capped our growth opportunities for the time being.”

He added: “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.”