Manchester Airports Group (MAG), which owns and operates Manchester, London Stansted and East Midlands airports, has had a record-breaking year as more than 60 million passengers travel through its gates.
The UK’s largest group of airports, MAG served a total of 61.3 million people in the 12 months ended March 31, 2024, exceeding passenger levels recorded in 2019-20 for the first time.
This delivered a 20 per cent boost to its revenue, which hit £1.2bn over the 12 months, up from just over £1bn in the year before.
MAG’s operating profit stood at £240m after accounting for one-offs, up from £28.6m in the 12 months before.
Celebrating the record results, the group announced it would invest £2bn in its airports over the next five years in a bid to expand capacity and improve customer service.
MAG CEO Ken O’Toole said: “I am pleased to announce these positive results for 2023-24, which demonstrate the vital role our airports play in connecting people and businesses to the world.
“Our growing route networks are providing access to more than 200 destinations, and we are committed to giving passengers the best possible choice to help them shape their journeys to suit their needs.
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“I am proud of the high levels of customer service we have been able to provide across this reporting period and thank all of our colleagues and partners for delivering that.
“MAG has also continued to play a leading role in supporting the transition to net zero carbon aviation by 2050, and that will continue in earnest in the year ahead.
“As an island trading nation, we know that aviation has a critical role to play in the UK’s economic future. Aviation creates high quality jobs and enables global trade, investment and tourism, and we know that the UK’s economic sectors that will drive the most growth in the years ahead rely on global connectivity more than others.
“As the UK elects a new government, we look forward to working with them on an industrial strategy for the country that is underpinned by the sustainable growth of aviation.”
Airports group eyes £1.3bn takeover deal
Last week it was reported that MAG was weighing up adding Aberdeen, Glasgow and Southampton (AGS) Airports to its portfolio in a £1.3bn swoop.
It will be joined by a group of Australian pension funds in pursuing AGS, which is valued at £1.3bn and was put up for sale by its owners Macquarie and the Spanish infrastructure giant Ferrovial earlier in the year.
The move comes after Ferrovial let go of the majority of its stake in Heathrow earlier in the year in a £3.3bn deal with Saudi Arabia’s Public Investment Fund (PIF).
It also falls amid a spate of dealmaking in the UK airport sector. Heathrow’s Saudi takeover raised eyebrows amid growing concern over investments from the oil-rich nation in UK infrastructure assets.
Meanwhile Vinci, which owns Gatwick, bagged a 50.01 per cent stake in Edinburgh airport earlier this year in a deal valuing the hub at £2.5bn.
Aena and MAG were also understood to be in the running to buy Edinburgh Airport as well, the Sunday Times reported.