Munich Airport posts new traffic records and good financial results

Munich Airport continues to rise in the rankings of Europe's most important air transportation hubs: Bavaria's gateway to the world handled some 38 million passengers in 2011 and vaulted past Rome to secure the number six position among Europe's busiest 10 airports for the first time. With a massive 9 percent gain in total passengers, Munich also rose three positions in the global rankings to the number 27 spot. In terms of aircraft movements, Munich also continues to advance in the rankings. The 410,000 take-offs and landings recorded at the airport last year marked a 5 percent increase, and lifted Munich to the number six position in Europe in this category as well. Airfreight showed a 4 percent gain in 2011 and increased to a new record level of 286,000 tons.

The booming traffic figures and the continued increases in sales in the non-aviation segment – for instance the airport's shops and restaurants – are reflected in the 2011 financial results of FMG, the Munich Airport operating company: Preliminary figures indicated that overall revenues, at about € 950 million, were 6 percent higher than the year before. Taking into account the subsidiaries, the group actually achieved total sales of over 1.2 billion euros. The operating result (EBITDA) amounts to approximately 270 million euros, and total earnings after taxes (EAT) are expected to rise to approximately 230 million euros. FMG achieved cash flow in the neighborhood of 215 million euros. "The 2011 results demonstrate that FMG is an efficient and economically sound company with the ability to compete successfully and cope with the challenges of the market," said Dr. Michael Kerkloh, the President and CEO of FMG at the company's annual press conference today.

The above-average gains in passenger figures at Munich Airport are based in particular on the airport's successful hub concept. The share of connecting passengers in total traffic has been increasing for years, and in 2011 again rose by 3 percentage points to 40 percent. By comparison: When the airport opened in 1992, this figure was just 12 percent. The development of the hub structure has been flanked by a steady expansion in the route network and especially intercontinental services from Munich. The number of weekly take-offs to long-haul destinations more than doubled between 2001 and 2011, from 138 to 278.

Approximately 90 percent of all intercontinental traffic to and from Germany are handled through the two hubs of Munich and Frankfurt. For that reason, airport CEO Kerkloh calls the hub concept, "a model for success for intercontinental traffic in Europe." The airport CEO added, "From an economic and ecological standpoint, a hub concept is the most efficient way of organizing intercontinental traffic, as the passengers are channeled through a smaller number of flights, which ensures optimal use of aircraft capacity."

An increasing threat to Munich's hub traffic are the capacity crunches in the airport's runway system. Because no additional slots are available at peak periods, airlines in Munich can respond to rising passenger demand only by switching to larger aircraft – if their fleets allow this. This is one reason why the average number of seats per flight in Munich increased by four in 2011 to 134. The average number of passengers per flight was 99, which represents a gain of three, while the load factor was almost unchanged at a record level of approximately 74 percent.

Partly owing to the lack of available slots at Munich Airport, CEO Michael Kerkloh does not expect a significant increase in aircraft movements in 2012, but he does anticipate a substantial gain in passenger figures. Looking ahead to the airport's future development, Kerkloh stressed the necessity of the planned airport expansion. "Only by building the third runway soon can we be assured of overcoming the bottlenecks forcing us to turn away potential traffic and moving forward with the development of the Munich hub to maintain economic competitiveness and continued access to mobility for the Bavarian population." For the second strategic expansion project, the development of a satellite building on the eastern apron, preparatory work is already underway. The official start of construction of the Terminal 2 satellite will take place on April 23 of this year when the cornerstone for the new facility is laid.

For the upcoming 20th anniversary of Munich Airport on May 17, 2012, Kerkloh announced a birthday party at the Munich Airport Center open to the general public: "I believe that these two decades with Munich Airport are a real cause for celebration. There are certainly not many transportation infrastructure projects in our country that have matched these growth rates or have achieved the kind of worldwide reputation earned by Munich Airport."

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