- Passenger numbers and turnover go up in fiscal year 2003
Hamburg Airport reports net profit of €21.8 million
Hamburg Airport is pleased to report a successful fiscal year 2003. For the first time in several years the Group reported a substantial increase in passenger figures and turnover. Flughafen Hamburg GmbH, the Hamburg Airport operating company, reported a net profit of €21.8 million, which is exactly on a par with the previous year’s net profit of €21.8 million. Turnover went up to €186.8 million, a 1.6% increase on the previous year. “Despite the difficult economic conditions and a high amount of extraordinary expenditure, Hamburg Airport has had a successful business year,“ stated Werner Hauschild, Chairman of the Executive Board. “These results have again secured Hamburg Airport a top position among German and European airports.” With passenger figures rising by 6.5%, Hamburg Airport’s growth was significantly higher than average.
Strict cost discipline secures good result
Despite the ailing global economy, the SARS epidemic, the Iraq war and extraordinary expenditure totalling €5 million due to damage to the terminal access roads, Hamburg Airport reported a profit for 2003. The cost reduction programme put in place in the previous year continued in 2003 with the result that overtime was reduced, costs were cut back stringently and all non-essential investment projects were postponed. The €350-million HAM 21 Extension Project continued to plan and it remains well within budget and the scheduled timeframe. The cost reduction programme enabled the Airport to absorb unforeseen extraordinary expenses, including the large-scale subsidence of the access road outside Terminals 3 and 4 in April 2003 which necessitated comprehensive construction work and the rerouting of all land-side traffic for several months. Hamburg Airport has had to defray the cost of this damage, totalling almost €5 million. Other extraordinary expenses included the cost of putting in place additional security measures at the Airport and higher insurance premiums.
Hamburg Airport aligns business strategy
In addition to the successful introduction of cost cutting measures, Hamburg Airport also reviewed the company’s business strategy with the aim of attaining an even higher level of efficiency in cost management and boosting existing sales and earnings potential even further. “Structuring Flughafen Hamburg GmbH into a parent company with ten affiliated companies has given us a highly effective basic structure in difficult economic times,” said Werner Hauschild. “Taking this sound foundation as our basis, we performed a meticulous review of our business strategy and subsequently restructured a variety of business processes, thus ensuring that the Airport remains highly competitive.” Non-aviation business plays a key role, and this segment has proved to be a dependable, crisis-proof source of revenue. Currently, one third of the Airport’s turnover stems from non-aviation activities, including income from rent, concessions and leaseholds, catering and retail, parking fees and the marketing of advertising space. All of these activities will in future be grouped together under a new name, ‘Center Management’, and will be driven forward strategically. “Our aim is operate even closer to the market and to position non-aviation as a key complementary market for Hamburg Airport,” explained Werner Hauschild.
Hamburg Airport – a fair partner for all airlines
The even balance that Hamburg Airport has achieved between business travel and holiday travel again proved to be one of the Airport’s key strengths in 2003. As the largest international airport in northern Germany, Hamburg Airport offers airlines a catchment area with a population of up to 7.5 million, a tempting market for both traditional airlines and the new low-cost carriers. With its attractive, fair terms for all airlines, Hamburg Airport has a high level of appeal for both segments and has been attracting a substantial volume of new traffic. Airlines which started operating from Hamburg Airport in 2003 include airBaltic, Air Nostrum, Germania Express, Hapag-Lloyd Express and VLM. Air Berlin, Cirrus Airlines, dba, Iran Air and Lufthansa all increased their service frequencies to and from Hamburg considerably. In total, 62 airlines fly to 110 domestic and international destinations from Hamburg Airport.
The Airport – an exciting world
One of the highlights of Hamburg’s events calendar in 2003 was the Third Hamburg Airport Classics show, which took place in September and was organized by Hamburg Airport and Lufthansa Technik. This spectacular aviation show was an irresistible magnet, attracting 100,000 spectators. “Airport TV”, a weekly show broadcast by the local TV channel, Hamburg 1, went on air in October 2003. The show, which features thrilling in-depth coverage of Hamburg Airport, enjoys great popularity.
Outlook for fiscal year 2004
The aviation industry anticipates a tangible recovery for the current fiscal year, as does Hamburg Airport. “We expect to see substantial growth triggered by the European scheduled services and low-cost segments,” stated Werner Hauschild. The good economic prospects which Hamburg and the greater Hamburg area have will help to increase passenger traffic at the Airport. One of the key targets for the year is to exceed the passenger volume reported in 2000. Already, the current year is shaping up very well, with several appealing new services operating from Hamburg Airport, including among others the Blue 1 service to Helsinki, HLX services to Klagenfurt and Dublin and Lufthansa’s service to Nice.
2004 will be dominated by the HAM 21 Extension Project. The first milestone of the year was passed on 27 January when the south extension of the Passenger Pier opened. In the autumn, the Car Park Rotunda will follow, providing 2,200 new parking spaces right on time for the autumn holidays. In spring 2005, the new Terminal 2 will open its doors to passengers; together with the existing Terminal 4 this will take the Airport’s handling capacity up to 15 million passengers. Another key improvement that the year has in store is the wider, more spacious access roads, making it easier and faster for motorists to get to the Airport.