Passenger numbers increased by 1.7 million, or nearly 4%, to a record 47.9 million at Munich Airport in 2019.

Flughafen München GmbH (FMG) is hoping sales revenues of €1.6bn/$1.8bn (preliminary figure) registered in 2019 will help the Munich Airport operator contend with the Covid-19 crisis.

The revenue generated by the airport and its subsidiaries rose 4% year-on-year, according to the company’s annual results statement. Eurotrade and Capi are among the operators at the airport, which experienced strong traffic growth last year. Passenger numbers increased by 1.7 million, or nearly 4%, to a record 47.9 million. During the same period, the number of take-offs and landings rose by 1% to nearly 417,000.

In the intercontinental segment, which is a key driver of the airport’s business performance, passenger numbers increased 9%. Approximately 8.4 million passengers took advantage of the 59 intercontinental connections offered at Munich Airport.

Jost Lammers, President and CEO, Munich Airport said: “We want to continue that trend when the current global crisis in aviation is over. Despite the expected massive decreases in traffic this year, our airport retains its enormous potential for continued dynamic growth.”

Earnings after taxes increased €25m to a new record of €175m. EBITDA rose to around €555m.

BEST EVER RESULT

Thomas Weyer, Chief Financial Officer, Flughafen München GmbH commented: “The fact that we posted the best result in our company’s history in 2019 will help us in 2020 to weather the massive declines in traffic and revenues caused by the coronavirus pandemic. We are now benefiting from the substantial reserves built up through the successful operation of our airport.”

In the meantime, the airport like many others is experiencing ‘massive decreases’ in every area. Take-offs and landings have declined steadily in March, plummeting to less than 10% of the number counted in the previous corresponding week in 2019. Passenger traffic is also only at 5% of last year’s level.

Amid the sharp declines, FMG and its subsidiaries began implementing measures to secure the airport’s liquidity several weeks ago. These include a group-wide set of measures to impose tight limits on personnel and material costs to save extensively in all areas.

Lammers explained: “We are experiencing a crisis in global air transportation on an unprecedented scale, with no end in sight. Protecting the health of the passengers and employees at Munich Airport remains our top priority. Another vital concern is to limit the enormous economic damage for Munich Airport and the people working here by taking all necessary measures to preserve our financial stability.”

The airport will continue operating to ensure returnees can get home and that cargo shipments keep moving quickly. Unneeded infrastructure in the A, B and D areas of Terminal 1 and Terminal 2 satellite facility have temporarily shut.

“Our goal this year is to adjust our economic and financial fundamentals to the current situation and the dry spell that lies ahead. In doing so, we will benefit from Munich Airport’s strong economic performance over the years and especially in 2019,” said Lammers.

He concluded: “The effects of the coronavirus crisis far exceed the impact of the terrorist attacks of 11 September 2001, or the global financial crisis in 2008. Consequently, it may take significantly longer this time before demand returns to the previous level.

“We cannot rule out structural changes in air traffic, but I have no doubt that the global need for mobility will increase in the medium term and that air travel will therefore return to growth once more.”