Airport increasingly serving as a springboard for intercontinental travel

Munich Airport reports record net annual profit of €155 million for 2017

April 11, 2018
With consolidated earnings after taxes at around €155 million, Munich Airport achieved the best result in its history in 2017. The Group again achieved a yearon-year increase of €100 million in annual revenues to around €1.5 billion – hanks in large part to a substantial 5.5 percent rise in total passengers to 44.6 million. The airport's strong economic performance also paid off for the neighboring communities, which will again take in business tax revenues of €35 million.

In view of the record figures, Dr. Michael Kerkloh, the President and CEO of Munich Airport, is confident that the company is well prepared for the challenges that lie ahead: "This ensures that Munich Airport will be able to make the necessary investments to handle its future tasks with its own financial resources." Kerkloh's outlook at today's annual press conference in Munich: "All the signs point to a continuation of our very satisfactory performance, so that we fully expect to report earnings at around the same level for 2018."

A look at the current traffic trends in the recently launched summer timetable period confirms this assessment. With five Lufthansa Airbus A380 aircraft now stationed in Munich, the Bavarian hub has become just the fourth European airport – after London, Paris and Frankfurt – to serve as a home base for the world's largest passenger aircraft. Lufthansa will operate daily services to Los Angeles, Hong Kong and Beijing with the superjumbo. In addition, the German carrier has added four planes from the Airbus A320 to its Munich fleet for mediumhaul flights. This has further improved the connectivity of the Munich hub. Another important component enhancing Munich Airport's hub status is the upgrade of the Lufthansa fleet with modern Airbus A350 long-haul jets. The airline has already eight of a total of 15 of these widebody jets in service.

The Munich Airport 2018 summer timetable includes a more extensive range of intercontinental flights and destinations than ever before. CEO Kerkloh called this "a further step in solidifying Munich Airport's hub function." He added: "The new long-haul services have greatly strengthened our airport's global network. Munich is becoming more and more attractive as a springboard for travel to other continents." The Lufthansa subsidiary Eurowings is also helping to maintain the momentum of this trend: From the beginning of next week, Eurowings will be launching new long-haul services to and from Munich. The airline will offer scheduled services from Munich to ten intercontinental destinations – including such holiday hotspots as Cancun, Fort Myers, Mauritius, Montego Bay and Las Vegas. As a result, travellers will have the option of flying with low-cost airlines on long-haul routes for the first time. Thanks to Eurowings, the share of low-cost carriers in total traffic in Munich is expected to increase to around 11 percent in 2018.


Summary of annual results of Munich Airport:

FMG Group financial results
(in million euros)

2017
(IFRS)

2016
(IFRS)

Consolidated revenue

1.4701.364

Earnings before interest, taxes depreciation
and amortization (EBITDA)

520529
Depreciation and amortization220239
Earnings before interest and taxes (EBIT)300290
Financial result-75-80
Taxes-70-58
EAT155152
EBITDA margin (in percent)3539
Operating cash flow380529


Please note that the 2017 financial results are still preliminary approximate values.

The approx. 2 percent year-on-year decrease in EBITDA resulted from non-recurring gains from disposals. The decrease in operating cash flow resulted mainly from liabilities in connection with the construction of the satellite terminal in 2016 and from higher tax payments in 2017.


Summary of traffic figures of Munich Airport:

Traffic figures20172016Change

Passenger volume
Commercial traffic

44.577.24142.261.309+ 5.5 percent

Aircraft movements
Total

404.505394.430+ 2.6 percent
Cargo (in tons)


Airfreight and airmail378.803353.650+ 7.1 percent
Thereof airfreight turnover362.831334.497+ 8.5 percent

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