CPH: Record passenger numbers bring solid earnings

Copenhagen Airport cemented its position as a hub for Northern Europe in 2015, with passenger numbers climbing to 26.6 million to set a new record for the fifth year in a row. This was due mainly to international passengers, with growth on long-haul routes in particular helping strengthen Copenhagen  Airport’s competitive position among the major European airports.

CEO Thomas Woldbye is pleased with the results:

“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. 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,” says Thomas Woldbye.

The rise in passenger numbers meant that aeronautical revenue increased by 5.1% and non-aeronautical revenue by 4.9%. Total revenue climbed DKK 194.4 million to DKK 4,061.9 million, an increase of 5.0%.

Heavy investment paves way for further growth

CPH is gradually expanding and improving Copenhagen Airport to handle growth in routes and passengers.  In 2015, CPH invested DKK 1,148.4 million in developing the airport:

“We continued to invest heavily in 2015. 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,” says Thomas Woldbye, who expects similarly high levels of investment in 2016.

Better passenger experience

CPH’s strategy is not only about strengthening the airport’s position as the leading hub of Northern Europe but also about creating a unique 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 Thomas Woldbye. “2015 saw us improving the central security check and adding new stores and restaurants that have been warmly welcomed by passengers.”

The success of this improved service offering is reflected in revenue from the shopping centre, which increased by 7.7% in 2015. Parking revenue also grew by 3.8%.

Further investment planned

CPH will continue to invest heavily in developing the airport in 2016. Planned investments include two new lanes in the central security check, the expansion of passport control in Pier C with self-service for EU citizens, bus gates in Pier C, the upgrading of baggage reclaim area, and a new drop-off solution in P4. CPH will also invest in other non-aeronautical projects benefiting airlines and passengers alike.

CPH’s expected traffic programme for 2016 includes a number of new routes and increased capacity, and so passenger numbers are expected to grow. Increasing competition and possible cost-cutting among the airlines and the global economic slowdown may still have a negative effect on traffic growth in 2016, but higher passenger numbers are expected to impact the year’s results positively.

Operating expenses are likely to be higher than in 2015, due mainly to passenger growth, increased security requirements and inflation, offset to some extent by a further focus on cost efficiencies.

Interest, depreciation and amortisation are expected to be in line with 2015, with further high investment levels offset to some extent by lower borrowing costs.

Profit before tax in 2016 is therefore expected to be between DKK 1,450.0 million and DKK 1,550.0 million excluding one-off items. EBITDA excluding one-off items is expected to be up on 2015.

Read CPH’s full Group Annual Report here