Sales at Copenhagen Airport’s shopping centre rose by 13.0% for HY1, due to higher spend per passenger and the full-year effect of the full occupancy of all space at the shopping centre.

 

As reported, at the end of Q2, CPH signed a five-year agreement with Gebr. Heinemann to continue to operate the duty free shops at Copenhagen Airport.

 

“The new contracts will contribute to creating travel experiences in line with our customers expectations and to ensure that we continue to develop the shopping centre in order to retain Copenhagen Airport’s top rankings in the retail field,” said Thomas Woldbye, CEO of Copenhagen Airports A/S [pictured left].

 

CPH has started a major project to renovate and expand Terminal 2 and the Arcade connecting Terminals 2 and 3 to create more space for passengers and better conditions for airlines and other tenants in the terminals.

 

NEW COMMERCIAL PROJECTS

Under the charges agreement, CPH must invest an average of DKK 500 million annually, but CPH expects to invest significantly more than this in 2012.  CPH will also be investing in other commercial projects for the benefit of airlines and passengers.

 

In addition, the number of check-in desks will be increased in order to match capacity to the expected increase in passenger numbers in the years ahead.

 

 

[Above: Gebr. Heinemann’s vision for retail and F&B at Copenhagen Airport]

 

Unlike other major airports in Europe, passenger numbers at CPH continued to rise by 4.2% (in HY1), to 11.3 million passengers, contributing to a 6.1% increase in revenue for the period, despite the bankruptcy of CPH’s third largest customer and challenging market conditions.

 

Profit before tax increased by 22.3% to DKK 533.9 million, primarily due to higher traffic revenue and growing sales at the shopping centre as well as lower financing costs, partly offset by the effect of the loss caused by the above mentioned bankruptcy.

 

CIMBER STERLING BANKRUPTCY

“Thanks partly to the strong efforts made by CPH relating to route development, a number of airlines have announced new routes and frequencies in the period since the Cimber Sterling bankruptcy,” says Woldbye.

 

“CPH has already regained 81% of the seat capacity we lost in connection with the bankruptcy; part of this new capacity will not be added until later in the year.

 

“CPH had minimised its risk of loss on outstanding receivables and therefore only suffered an immaterial direct loss on the Cimber Sterling bankruptcy,” said Thomas Woldbye,.

 

WORLD CLASS HUB STRATEGY

The number of transfer passengers at Copenhagen Airport rose in H1 2012. The increase was primarily driven by increased transfer traffic from Norway, Poland, Germany, the Baltic States and Finland, which supports CPH’s “World Class Hub strategy”.

 

CPH retains its profit forecast for the full year, based on the expected traffic programme for 2012, the total number of passengers is expected to increase.

 

“Traffic, however, could be adversely impacted by the continuing economic uncertainty in the Eurozone and any closure of routes due to airline reductions,” says CPH.