Malaysia Airports issues RFI to support airport advertising evolution across its network

Kuala Lumpur International Airport Terminal 1. — Image Credit: pacceka/Shutterstock

Malaysia Airports has launched a Request for Information (RFI) inviting leading airport media operators, advertising concessionaires and strategic partners to share their insights on the future development of its airport advertising estate.

The scope of the RFI covers Kuala Lumpur International Airport (KLIA) Terminal 1, KLIA Terminal 2 and selected airports across Malaysia throughout Peninsula Malaysia, Sabah and Sarawak.

The move is designed to explore how airport advertising can ‘evolve through digital transformation, data-informed audience measurement, omnichannel engagement and more sustainable Digital Out-of-Home (DOOH) solutions, while enhancing the overall passenger experience’, according to the airport operator.

The exercise will also assess potential commercial models and how Malaysia Airports’ advertising estate can better support its wider ambition of strengthening its airports as gateways for tourism and business.

Interested parties are invited to submit their responses by 25 September 2026, 5.00 pm MYT (see details below).

The RFI exercise forms part of wider efforts to prepare the airport network for its next phase of growth.

In 2025, Malaysia Airports recorded 104.5 million passenger movements across its local network, comprising a broad mix of international, domestic and regional travellers.

Alongside infrastructure and operational improvements, Malaysia Airports is reviewing how its commercial assets and partnerships can contribute more effectively to the terminal environment and support the long-term development of its airports.

“Our airport network offers significant reach across a wide range of passenger segments and markets. Through this RFI, we want to understand how that potential can be developed into a more effective airport media ecosystem that serves brands and partners while contributing positively to the passenger experience,” said Malaysia Airports Managing Director Dato’ Mohd Izani Ghani.

“This is also an opportunity to reinforce our airports as gateways for tourism and business, as well as spaces that reflect Malaysian identity. The insights received will help us determine how airport advertising can support our broader ambition to position Malaysia as the most connected country in Asia Pacific.”

The airport advertising review is said to focus on three areas: enhancing terminal ambience, strengthening the commercial potential of the advertising estate and accelerating its digital transformation.

As mentioned above, Malaysia Airports is seeking insights on how data-informed audience measurement, automated media capabilities and omnichannel engagement can enable brands to connect more effectively with travellers.

The review will also consider smart-airport integration and energy-efficient Digital Out-of-Home (DOOH) solutions that complement passenger wayfinding and the wider terminal environment.

The advertising estate spans terminal buildings, Flight Information Display Systems (FIDS), DOOH screens, airport trolleys and other Malaysia Airports-owned infrastructure.

Market feedback is also being sought on potential delivery models, including a unified nationwide concession, regional clusters or other suitable structures.

Respondents may provide views on Minimum Annual Guarantee (MAG), revenue-sharing arrangements, passenger-linked models and other rental mechanisms.

Sustainable operating practices and relevant Environmental, Social and Governance (ESG) principles will also form part of the assessment.

Interested parties are invited to submit their responses electronically in PDF and Excel (Financial) format to the Tender, Contract Management and Business Improvement Unit.

Request for Information Submission Details

Submission deadline: 25 September 2026, 5.00 pm MYT

Submission method: Electronic submission in PDF and Excel (Financial) format to the Tender, Contract Management and Business Improvement Unit.

Email: [email protected]

All change for top airports in H1: Incheon crowned as Dubai freefalls

South Korea’s Incheon Airport (ICN) topped the ranking for the world’s busiest international airports in the first half of 2026 as the previous leader, Dubai International (DXB) crashed to eighth place. Meanwhile, London Heathrow (LHR) was overtaken in July by Istanbul Airport (IST) as Europe’s busiest gateway.

According to H1 traffic data from analyst Air4casts, ICN has taken pole position by leapfrogging LHR, which has stayed in second place, due to its route exposure to the Middle East crisis, which was reactivated after a lull, in July. DXB’s freefall was predictable due to the fallout from the conflict that started on 28 February and shows how quickly geopolitical events can affect airport duty-free retailers and operators.

On the rejigged positions, Air4casts notes: “It is the first change at the top since the pandemic recovery settled, and it did not happen because of anything that took place in Seoul in the last six months. The Top 10 carried -2.4% fewer international passengers than in the first half of 2025. Remove Dubai and the other nine grew by +2.4%. That single substitution is the story of the first half.”

Wider scenarios are playing out. LHR, which one might have assumed would take the top spot, had been growing at +2.2% in January/February but dropped to +0.3% in March/April and -1.5% in May/June, according to the data. The deceleration began when Gulf airspace closures started, with LHR was impacted more than ICN.

Incheon Heathrow — Image Credit: Air4Casts

“Had Heathrow simply held its January/February growth rate across the first half it would have finished on 38.5m and kept first place by 0.14m. Seoul did not take first place from LHR so much as Heathrow’s Middle East exposure handed it over,” notes Air4casts.

Asian airports set the pace

Nevertheless, ICN did climb by an impressive +6.3%, taking the airport’s international passengers to 38.4m in H1, just enough to deny LHR the top spot. The London hub handled 37.8m international passengers, up +0.2%. ICN’s success has largely been due to a Korean inbound tourism boom, led by Chinese and Japanese visitors.

Air4casts’ H1 Top 10 also shows that the three existing Asia hubs on the list—ICN, Singapore Changi (SIN), and Hong Kong International (HKG)—all rose up the rankings while Bangkok Suvarnabhumi (BKK) jumped a place from 11th to 10th, year-on-year. BKK replaced Qatar’s Hamad International (DOH), which fell -34% and dropped out of the table.

HKG stood out as the only airport to see double-digit growth (+11.1%). Among other Asian hubs tracked by the analysts that grew strongly but are not in the Top 10 were Taipei Taoyuan (TPE) at +9.6% and Kuala Lumpur (KUL) at +6.6%.

Although DXB has suffered in H1, it is recovering every month. The airport fell from 7.4mn international passengers in February to 2.5m in March and had recovered to 4.7m by June. Air4casts says: “If Dubai continues to climb back at the June rate, the full year table will read differently again.”

Falic Group acquires luxury retail concessions at Zayed International Airport

Image Credit: Zayed International Airport

Falic Group has entered into an agreement to acquire 100% of DFS’s luxury travel retail business at Zayed International Airport (AUH) in Abu Dhabi.

The footprint comprises around 30 stores and the transaction is expected to close in the third quarter, subject to customary closing conditions.

“The acquisition of the luxury travel retail concessions at Abu Dhabi Airport marks a key milestone in our Middle East growth strategy and further expands our airport footprint and luxury retail presence,” said Leon Falic, President of Falic Group, which operates under the Duty Free Americas (DFA) brand.

“We are delighted to partner with one of the most prestigious airports globally and we warmly welcome the airport, brands, and customer partners to our DFA family as we begin this new chapter together.

“Duty Free Americas and Abu Dhabi Airports share an ambitious vision to further develop and elevate the luxury travel retail offering together.

“Plans include the incorporation of new flagship brands and expanded footprints for existing top-performers, as well as innovative open-air retail areas which will promote a more flexible passenger experience and drive conversion.”

The luxury travel retail concessions being transferred to Duty Free Americas are said to include ‘some of the most coveted brands in luxury and contemporary fashion, watches and jewellery, and sunglasses’, providing DFA with an immediate, scaled presence in one of the Middle East’s fastest-growing travel retail markets.

DFA at Zayed International Airport — Image Credit: Falic Group

Zayed International Airport welcomed more than 32 million passengers in 2025 and features 163 retail, leisure, dining and hospitality outlets across 36,000 sqm of commercial space.

“This agreement marks a deliberate step forward in enhancing the award-winning commercial ecosystem at Zayed International Airport,” said Carsten Nørland, Chief Commercial Officer of Abu Dhabi Airports.

“DFA brings global travel retail expertise that will help us deliver a more dynamic and value-driven retail environment, aligned with the evolving expectations of our passengers and our long-term commercial ambitions.”

The move builds on DFA’s expanding MEA footprint, following its recent win at Ras Al Khaimah (RAK) International Airport as the hub’s new travel retail partner, covering all categories.

At RAK, DFA is set to deliver a ‘refreshed, innovative and customer-centric’ retail environment across the airport’s duty-free and retail portfolio.

LVMH-owned DFS Group has executed a series of divestments and concession transfers in recent months. In March it announced the transfer of its travel retail concessions in Los Angeles International Airport and San Francisco International Airport, also to DFA.

This year has also seen Avolta enter into an agreement with DFS to acquire 100% of its operations in Okinawa while China Tourism Group Duty Free (CTG Duty-Free), struck an agreement to acquire DFS’s travel retail business in Hong Kong and Macau, as well as its intangible assets in Greater China. DFS has also withdrawn from the ‘seven-star’ Yalong Bay project.

Incheon topped $2.3bn in retail sales in 2025, underpinned by solid traffic growth

Hyundai Duty Free, Incheon Airport — Image Credit: Hyundai Duty Free

Asia-Pacific’s busiest hub for international traffic has had a concession reset and, with some tweaks, its operator is pushing hard for even bigger retail sales in 2026.

South Korea’s Incheon Airport (ICN) has had a stellar rise up the ACI World rankings of the world’s busiest hubs. From seventh place in 2023, the gateway jumped to third in 2024 as traffic surged by +27%. The hub maintained that position in 2025. Last year, international passenger numbers grew by a solid +4.1% to reach 73.6m out of a total 74.1m, a new record.

The airport’s post-Covid rebound has come at the same time as some major hiccups on the retail side of the business. Operator Incheon International Airport Corporation (IIAC) had to retender large parts of the retail floor, for example, the DF2 space which Shinsegae Duty Free pulled out of due to a dispute over rents. Hyundai Duty Free took on the area at the end of April under a new concession contract. Shinsegae still has a footprint at ICN with the DF4 space, and the retailer recently reopened a Cartier boutique.

Meanwhile, Lotte Duty Free won a seven-year concession for the DF1 retail space at Incheon that had been operated by The Shilla Duty Free. The latter is now locked in a lawsuit with IIAC over exit penalty fees. For Lotte, the win marked a return to the airport in mid-April, approximately three years after the closure of its liquor and tobacco concession in Terminal 2. The DF1 space covers just over 4,000sq m, with 15 stores focused on beauty, liquor, and tobacco.

Speaking to TRBusiness, Jimin Lim, Manager, Duty Free Management at IIAC, said: “The past 12 months have been particularly busy for ICN due to the onboarding of new operators. They all completed their store openings in April and are now operating successfully. We are pleased with the diversity of our tenant mix and brand portfolio.”

At Lotte, Daehyun Ahn, Head of the Strategy & Planning Division said that the DF1 zone would give the retailer an annual sales uplift of more than KRW400bn/$258m, adding: “Our Incheon entry strengthens our negotiating position with brands and opens up merchandising synergies – particularly in liquor, where we can leverage our Singapore Changi store – combined with digital and experiential elements to lift dwell time and conversion.”

Wooing the Chinese market

The mainstay of South Korean duty-free has traditionally been the Chinese traveller. While their per-head spending has declined post-Covid, they remain the core non-Korean shopper segment at ICN, and efforts are ramping up from all retailers at the airport to target them more precisely.

Lim at IIAC takes a pragmatic approach, commenting: “Trends in the retail industry are constantly evolving, and the ability to adapt to, and overcome, change is essential. We view the recent decline in spending among Chinese passengers as one of the key challenges we must address.

“In response, we are working to create new reasons for customers to visit and shop with us through seasonal promotions, the introduction of new brands, and other initiatives. We also have several entirely new shops currently in development, and together with the efforts of our new operators, we are optimistic about achieving sales growth over the next 12 months.”

The decline in spending by Chinese passengers at ICN is not to be underestimated. It has been one of the most significant shifts in consumer behaviour that IIAC has had to deal with, and was one reason for Shinsegae pulling out of concessions at the airport. But there are signs that conditions are improving.

A shifting value pool

China Trading Desk’s Q2 2026 outbound sentiment survey indicates that the market is active again “but no longer defined by simple recovery”. The wider 2026 outlook points to a large opportunity base – 184m outbound trips and $265bn in traveller spend – but, says CTD, “the value pool is shifting toward travellers and categories that can convert intent into actual spend”.

While Singapore ranks first as a travel destination for the Chinese, South Korea and Malaysia are close behind. Gen Z is showing a stronger preference for Korea, possibly because of the K-pop frenzy that’s been a feature of 2026 so far. This has allowed downtown retailers in Seoul, in particular, to take advantage by selling related merchandise.

From IIAC’s perspective, demand for duty-free shopping has softened compared with previous years, while interest in other retail channels, for example the downtown duty-free market, has increased.

However, Lim is upbeat and tells us: “At the same time, passengers are placing greater value on unique, experience-driven offerings that cannot be replicated elsewhere. We are therefore planning to introduce new retail spaces and concepts designed to provide distinctive experiences that customers can enjoy exclusively at Incheon.”

IIAC did not elaborate on what these spaces and concepts will consist of – but it is confident that the new retailer mix and offer to passengers it now has in place will bring results. Based on the average KRW/USD exchange rate for each year, the airport operator achieved retail sales of $2.05bn in 2024, and $2.32bn in 2025.

While the company did not forecast a figure this year, Lim said: “For 2026, we expect sales growth driven by partnerships with new operators, as well as the introduction of more customer-friendly stores and promotional programmes.”

*Based on the exchange rate on 30 June 2026: KRW1000 = USD0.64.

This feature first appeared in the Top 10 Airport report in the July issue of TRBusiness. Click here to read.

Shilla Duty Free second quarter: revenue down -9%, but profit rises again

Image Credit: Hotel Shilla

Shilla Duty Free has become more profitable.

South Korea’s Shilla Duty Free saw unaudited revenue in the second quarter (ending June 2026) fall below 800 billion Korean won due to a year-on-year (YOY) double-digit decline in airport revenue following a concession exit from Incheon Airport (ICN) in April.

However, the company’s strategic focus on profitability is continuing to reap rewards, with another quarter in positive territory – and treble the retailer’s Q1 result.

In numbers, Q2 travel retail revenue fell by –9.1% YOY to KRW772.6bn ($545m*) while operating profit increased to KRW36.4bn ($25.7m). In the same period in 2025, the company was loss-making to the tune of KRW11.3bn, indicating a solid turnaround in the three months to June. Moreover, the Q2 profit was three times that of Q1’s KRW12.2bn, which should give investors confidence that the ICN exit was the correct decision.

As expected, airports see a downturn

Breaking down the travel retail revenue profile, parent company Hotel Shilla noted that downtown increased by +2% YOY and airports decreased by -17.4%. Having vacated the DF1 zone at Incheon Airport, it is now in the hands of returnee Lotte Duty Free. Shilla also has duty-free operations at the airports of Singapore Changi International (8,044sq m) and Hong Kong International (3,636 sq m).

Hotel Shilla – whose other, much smaller, business division is Hotel & Leisure – added that it would continue to focus on profitability recovery in travel retail in the current quarter ending September. This, it said, is “in response to changes in the internal/external environment” of the market.

At the top line across the whole business, Hotel Shilla’s total consolidated revenue decreased by -5.2% YOY to KRW971.8bn, with operating profit soaring by +602% YOY to KRW61.1bn.

* FX conversions at today’s rate.

Shinsegae Duty Free grows profit in Q2 as business restructuring takes effect

Shinsegae Duty Free has reported a period of strategic growth in Q2, with sales reaching KRW543 billion (approx. US$380 million*), according to the company’s 2026 2Q Earnings report, released on 11 August.

The figure represents a 10.3% decline, compared to the same period in 2025. However, operating profit for the quarter rose by 6.1% (OPM) to reach KRW33 billion, boosting total H1 operating profit to KRW44 billion – a positive turnaround compared to profit being in the red by KRW4 billion in H1 2025.

The results take Shinsegae Duty-Free’s H1 2026 sales to KRW1,132 billion – down just 3% yoy, but with operating profit up by KRW48 billion.

The Shinsegae company’s total sales reached KRW 6,36bn in H1 2026. This includes the turnover generated by its department store business, Central (Central City complex, commercial property and related businesses), Shinsegae International (fashion, beauty and lifestyle), CASA (furniture, home interiors and lifestyle products), and live shopping divisions.

Shinsegae attributed the stable profit base exhibited in its duty-free business in Q1 2026 to business restructuring, flagging ‘higher profitability from continued discount rate reductions’ and an ‘improved earnings structure following the DF2 exit’ at Incheon International Airport, as key factors.

Shinsegae Duty Free also turned an operating profit in Q1 2026 of KRW11 billion (see chart below).

At the group level this amounted to a 5.4% contribution, well below the department store division’s 71.3% share, and the reason the company had been pushing for better profitability in Q2.

In 2025, total sales for Shinsegae Duty Free reached KRW2,305 billion (approx. US$1.61 bn**), representing a 14.9% hike yoy, yet with operating profit negative KRW7 billion.

The final quarter of that saw saw the travel retail double down on profit-focused operations with improved inventory efficiency while at the same time battling a rent cost increase due to outbound passenger growth.

The travel retailer pulled out of the DF2 concession at Incheon Aiprort (ICN) on 28 April, citing the rent burden as the decisive factor. (The concession, covering cosmetics/perfumes and liquor/tobacco, is now with Hyundai Duty Free.)

Shinsegae Duty Free still has other concessions at ICN – it secured the concession for the DF4 zone (Fashion & Boutique) at the hub back in 2023, and has been developing the area into a curated ‘luxury fashion boutique zone’ ever since with boutiques from leading houses including Hermès, Louis Vuitton, Dior and Celine leading the way.

On 12 March, it unveiled the reimagined Cartier boutique in Terminal 1 featuring a full selection of creations, including jewellery, timepieces, leather goods, fragrances and accessories.

More recently, over in T2, the travel retailer opened South Korea’s first-ever two-storey Louis Vuitton store at an airport. The expansion introduced a dedicated men’s section on the 4th floor, adding to the existing women’s store on the 3rd floor which launched in February 2025.

The exterior façade – inspired by the concepts of travel, movement, and light – will be completed by the end of the year.

Also in T2, Shinsegae Duty Free operates stores for luxury brands including Hermès (a double-façade store), Celine and Bottega Veneta.

At its flagship downtown Myeongdong store, shoppers can discover a leading labels such as Louis Vuitton, Hermès and Chanel alongside a vibrant roster of brand and retail experiences like the Medicube Forever Cherry pop-up marking the Korea debut of the highly anticipated collaboration collection with K-pop star Jang Wonyoung. This pop-up is running until 30 November.

*Conversion based on average exchange rate in 2026. ***Conversion based on average exchange rate in 2025.

The figures mentioned in this article are based on accounting revenue.

Heathrow brings more brands – and more formats – into the mix

London Heathrow is pivoting its convenience offer as blended retail takes a more central role. We examine some of the new concepts…

Capacity-constrained London Heathrow (LHR) managed growth of +0.7% last year to reach nearly 79.9m international passengers (and 84.5m in total), securing second place after DXB in ACI World’s busiest airports for international passenger traffic ranking. It also remained the only western European hub in the league table to be ahead of pre-Covid traffic.

One of LHR’s key advantages is that it is a very well connected gateway with 226 destinations and ranked first in OAG’s latest Top 50 Global Airport Megahubs Index. Not wanting to lose that advantage, it is pushing hard for a third runway that will enable it to expand its connections further and unlock faster passenger growth.

The project is being backed by a £49bn/$64.6bn* privately financed masterplan with an ambitious delivery timeline of a decade from now. As well as building a new runway, the ambitious project includes the addition of new terminals, plus new satellites for existing terminals. This could significantly expand the retail and F&B offer at the airport from its current 58,600sq m. Much of that is operated by Avolta which runs the main duty-free stores at the airport’s four terminals.

Revenue from retail concessions was under pressure last year. As the biggest component of the retail income stream, concessions brought in £293m/$386.5m, a -2.3% year-on-year (YOY) decrease. Catering made up for some of that decline, rising +7.9% to £96m/$126.6m helped by longer opening hours, while other retail components such as car parking and non-concession retail also made gains. This enabled total retail revenue to grow by +2.5% to £791m/$1,043.3m last year.

Blended retail makes headway to Heathrow

Nevertheless, with retail concessions in decline it looks like changes are afoot to adapt more fluidly to the way passengers shop – and to give them what they want in a more efficient and practical way.

Fraser Brown, Retail Director, Heathrow Airport. — Image Credit: Heathrow Airports Limited

This is encapsulated in the concept of blended or hybrid retail, and two examples were inaugurated this year when WHSmith opened three flagship stores in terminals 3, 4 and 5 in April, and Lagardère Travel Retail’s UK debut of its convenience/travel essentials brand Relay in T2 in May, with a further three stores scheduled to open progressively over the course of this year.

Both retailers’ formats are essentially one-stop shop concepts. WHSmith’s stores combine everyday essentials including a range of health and beauty products including its own-brand range called Roame, plus food and drink, coffee-to-go, tech accessories and pharmacy services under the Well Pharmacy brand, staffed by healthcare professionals.

Relay’s T2 offer is similar in that it brings to life travel essentials, food-to-go, pharmacy services, and souvenirs and gifts under one roof. Where it differs is that it has partnered with Waitrose – a recognisable, upscale national supermarket brand for its food-to-go offer – and with regional pharmacy, Paydens, for its pharmacy service. This includes a wellness range of beauty products that does not compete with the main duty-free store in the terminal.

Heathrow Airport Terminal 2 (The Queen’s Terminal). — Image Credit: Heathrow Airports Limited

The blended proof of concept was tested back in 2020 and is now in full flow. Fraser Brown, Retail Director at Heathrow Airport, tells TRBusiness: “We’re absolutely clear that blended retail is the right thing to do in the departure lounges at Heathrow where we are so tight on space. We all know that non-aeronautical income is under pressure. By blending everything together we’re using space intelligently and delivering a strong offer and a one-stop shop.”

Lagardère’s arrival on a big scale at Heathrow will step up competition at the hub. The French travel retailer’s CEO Frédéric Chevalier told TRBusiness: “Heathrow is a global flagship airport and Relay is the largest brand in its category in travel retail – it’s a message. Relay is a powerful brand and Heathrow wants the best.”

With a foot in the UK door, Lagardère is likely to push hard to establish Relay at other locations once it has proved its worth at LHR.

In duty-free, LHR is one of Avolta’s most important locations and CEO Xavier Rossinyol, told TRBusiness: “We super happy with the relationship we have at Heathrow. It works very well because our focus, and that of the airport and brand partners, is on the traveller, which is key.”

Avolta has also been a strong advocate for hybrid retailing. Asked if we might see cafés in its Heathrow duty-free stores, anytime soon, Rossinyol said: “It will depend on what the passengers want and, of course, the physical limitations. Beyond that I am open to anything that improves the customer experience.”

Implementing DESO

At a strategic level, Heathrow is implementing a retail plan focused on digital, experience, space, and offer (DESO) and one example of that is its Reserve & Collect service, launched last year. Ross Baker, Heathrow’s Chief Customer Officer notes, too, that the passenger experience was boosted through new retail and dining options such as M&S Airside, Lululemon, and Five Guys in T5, alongside premium upgrades like the refurbished Windsor Suite and new lounges.

Poet David Larbi’s lyrical tribute to Heathrow, for its 80th anniversary, is visible only to passengers flying in and out of the hub. — Image Credit: Heathrow Airports Limited

Brown describes Heathrow as the “most intense place on the planet” to trade. “Per square metre, these are some of the biggest stores in the world for many of our retail partners,” he adds. LHR is routinely scouting the market to identify potential new entrants with the ability to reach a commercial deal with minimal disruption and delay, for example, by tendering locations to businesses that could make immediate use of a structure “as is”.

The airport is also in continued dialogue with officials in the UK Treasury around pitching for an alternative solution for the reintroduction of VAT-free shopping for departing passengers. It is also eyeing the opportunity to introduce duty-free shopping for arriving passengers.

In a June 2026, investor report, Heathrow noted further commercial progress such as a new VIP online booking portal, the introduction of premium retail and F&B brands, and says that works are “progressing well” for its T5 departure lounge luxury zone.

Conceptual image of Heathrow’s third runway. — Image Credit: Heathrow Airports Limited

The airport also saw a benefit from the closure of airspace in the Middle East in Q1 2026. This led to an increase in transfer passengers across LHR’s network, bumping up traffic by +3.7% YoY to 18.9 million. In turn, retail revenue grew by +5.3% in the period. While the hub has temporarily absorbed demand from elsewhere, passenger numbers for the rest of the year are likely to be negatively impacted if significant uncertainty in the Middle East persists.

The expectation for 2026 is that passenger volumes will fall below guidance published in December 2025. Evaluating the potential implications of further conflict escalation, rising fuel costs, and weakening consumer confidence, all of which are downside risks to passenger demand, LHR says the best scenario is that it will achieve 2025’s traffic level of 84.5m, but in the worst case this could fall to 80.1m.

*Based on the average exchange rate in 2025: GBP1 = USD1.319.

This feature first appeared in the Top 10 Airport report in the July issue of TRBusiness. Click here to read.

DXB: Solid gains in 2025, but a shockwave in 2026

Snapshot of DDF's gleaming retail offering in Concourse C. — Image Credit: Dubai Duty Free

Dubai International reigned supreme in 2025, with retail performing strongly. This year the story is very different as the hub navigates the impact of external events.

For the 12th year in a row in 2025, Dubai International (DXB) was crowned the world’s busiest international hub by global airports association ACI World. With record traffic of 95.2m, DXB pulled away from number-two ranked, London Heathrow, creating a gap of more than 15m passengers.

The United Arab Emirates (UAE) airport’s core retailer, Dubai Duty Free (DDF), also had its best ever year. Sales surged by +9.9% year-on-year (YOY) to AED8.68 billion (US$2.38 billion) with the retailer’s Managing Director, Ramesh Cidambi, describing 2025 as “a truly historic year”, helped by an effective strategy to increase penetration, improve conversion, and drive transaction values.

The MD added: “Our 2025 performance is due to the resilience and dedication of the team under difficult conditions combined with great support from our suppliers and brand partners. They have increased customer engagement and spend… while breaking records in 10 out of 12 months during the year.”

That resilience – which saw DDF’s growth in sales exceeded passenger traffic by about 5% – will certainly be needed this year. The 28 February US-Israel attack on Iran and subsequent conflict has heavily impacted the United Arab Emirates (UAE). Airspace and route disruptions led to a March traffic collapse of -65.7% YOY to just 2.5m passengers. In March 2025, traffic hit 7.3m which means that in a single month DXB lost 4.8m passengers, a stark illustration of the conflict’s impact – with the repercussions ongoing.

Q1 traffic down -20.6%

An X post on 4 May from the Dubai Media Office, the government’s mouthpiece, noted that first quarter traffic at DXB fell to 18.6m, down -20.6% YOY. Much of that loss is from the high-spending transfer segment.

A mid-May impact study from ACI Asia-Pacific & Middle East (ACI APAC & MID), based on the nine top airports in Middle East, estimated that in 2025, approximately 197 million passengers travelled between Asia-Pacific and western destinations (Europe, Americas and Africa) equivalent to 540,000 passengers daily. About 18% of them – roughly 97,000 passengers per day – connected through hubs in the Middle East, with Emirates at DXB, and Qatar Airways at Hamad International (DOH), taking the lion’s share.

ACI APAC & MID stated: “The restriction of Gulf airspace effectively removed nearly one-fifth of all east-west connecting capacity from the global aviation network within hours of the conflict’s onset, an event of systemic significance for international air transport.”

Dubai Airports, the state-owned operator of DXB, maintains that as conditions stabilise, the transfer segment “is expected to recover quickly” because it “cannot be readily absorbed elsewhere”.

Ramesh Cidambi, Managing Director, Dubai Duty Free and Paul Griffiths, CEO of Dubai Airports. — Image Credit: DDF/Dubai Airports

Paul Griffiths, CEO of Dubai Airports, said in a statement: “International transfer traffic through the Middle East region accounts for a major share of the global air travel market, with 22.4 million annual passenger journeys flowing through DXB, representing one third of the transfer traffic across the region’s hubs. Maintaining the smooth operation of DXB is therefore critical to keep global journeys moving.

DDF redesigned its Arrivals shops across Terminals 1, 2, and 3 at DXB just over a year ago. — Image Credit: Dubai Duty Free

“Our collective response to these challenges has sharpened our ability to adapt at pace. That readiness will enable us to accommodate returning demand as capacity is restored, reinforcing DXB’s role as a leading global hub, even as some regional routing constraints remain.”

Those constraints might not be short-lived. While Emirates has put back 96% of its global network, the CEO of the world’s most profitable airline, Sheikh Ahmed bin Saeed Al Maktoum, admits that “we are still operating at a lower passenger capacity than pre-disruption”, but added, “Dubai’s place at the nexus of global commerce, trade and travel flows is unchanged”.

Communications lockdown

The conflict led to an immediate shut-down of sales-related press releases from DDF, with no publication of its first quarter 2026 performance as yet. From a Q1 customer perspective, India was DXB’s largest country market again, with 2.5 million travellers, followed by Saudi Arabia at 1.3 million, the UK at 1.2 million, and Pakistan at 918,000. London remained DXB’s busiest city destination with 752,000 guests, followed by Mumbai at 520,000, and Jeddah at 505,000.

Dubai Airports has also been guarded in its external communications and could not take part in this report for that reason. Looking ahead, the DXB operator was not able to provide any firm traffic forecast for the year given the still unstable conflict scenario. Dubai Airports says only that the outlook for the year “remains underpinned by strong underlying demand”.

HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman & Chief Executive, Emirates Airline & Group. — Image Credit: Emirates

However, the headwinds of elevated airfares (July-August flights to and from Middle East are priced at an average of +50% above pre-conflict levels), and travellers having already booked alternative destinations for summer vacations, will be formidable hurdles. As airspace capacity improves, DXB is actively increasing flight movements and working with airline and airspace partners to unlock additional network capacity.

For both DDF and Dubai Airports, the priority will be to bring passengers back to the airport and to the shops – particularly the more cautious leisure travellers on whom a significant part of Dubai’s economy is built. The emirate welcomed 19.6 million visitors in 2025.

This will require a big drive across multiple disciplines including aviation, tourism and hospitality. Based on past performance, Dubai has excelled at this, in part thanks to what Emirates Group’s CEO describes as “a cohesive aviation ecosystem”. So expect a big push for the rest of the year if conditions stabilise sufficiently.

This feature first appeared in the Top 10 Airport report in the July issue of TRBusiness. Click here to read.

Chanel opens standalone beauty boutique at Toronto Pearson

Chanel has opened a new standalone Fragrance & Beauty boutique at Toronto Pearson International Airport Terminal 1, strengthening the luxury house’s presence at one of Canada’s key international travel hubs.

Designed to offer travellers a more immersive and highly personalised beauty experience, the new space brings together Chanel’s fragrance, skincare and make-up categories alongside eyewear and exclusive travel-ready sets.

The boutique draws on both the heritage and modernity of the house, incorporating recognisable Chanel design codes alongside luminous tones and contemporary seasonal textures intended to evoke a sense of effortless summer elegance.

Among the highlights is the Les Beiges collection, designed to enhance natural radiance during the summer season. Travellers can also explore Chanel’s signature fragrances, skincare and make-up essentials, with products spanning daytime protection through to evening beauty routines.

The space also showcases the Spring/Summer 2026 Eyewear collection, featuring contemporary silhouettes alongside more timeless designs inspired by the Chanel summer lifestyle.

Travel-specific sets form another part of the assortment, giving passengers access to products and formats designed for beauty on the move.

Chanel said the boutique has been conceived as more than a traditional retail space, with a focus on discovery, craftsmanship, self-expression and personalised service designed to elevate the airport shopping experience.

The Chanel Fragrance & Beauty boutique is now open at Toronto Pearson Terminal 1 and will welcome travellers throughout the summer season.

Avolta acquires majority stake in Penha Duty Free Group in the Caribbean

Aerial view of the island of Aruba. — Image Credit: DiegoMariottini/Shutterstock

Avolta has acquired a majority stake in Penha Duty Free Group, a duty-free operator in the Caribbean, strengthening its position in a number of top leisure destinations in the region.

Penha Duty Free Group operates 25 points of sale across Aruba, Bonaire, Curacao, Grand Cayman and St. Maarten, serving domestic and international travellers in airport, cruise ports and downtown retail locations.

The business operates under long-term concession agreements, with a weighted average remaining duration of more than 10 years. In 2025, it generated revenues of approximately CHF47 million (approx. US$56.7m).

This first step sees Avolta taking a 51% stake in the business, with the transaction providing a contractual pathway to 100% ownership by the travel retail and food & beverage powerhouse.

Avolta states the transaction is consistent with the company’s capital allocation framework, focusing on disciplined, value-accretive investments.

‘It is funded with available cash on balance sheet, has a negligible impact on leverage (less than 0.01x) and is expected to be immediately accretive to EBITDA margin, earnings per share, equity free cash flow and ROIC,’ reads a company announcement.

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