Low-cost carriers drive growth at Manchester Airports Group

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Passenger traffic and profits have been boosted by the popularity of budget airlines

Manchester Airports Group (MAG) has revealed passenger levels at its portfolio of airports grew by 9.4% to 25.3m in the year to March 31, 2004.

The rise was driven by a 77% leap in the use of low-cost airlines. In 2003/2004  Manchester airport introduced several new low-cost carriers including bmibaby, Hapag Lloyd Express and V-Bird, tipping its passenger  numbers over the 20m mark. Nottingham East Midlands airport also enjoyed growth from its low-cost airlines, namely bmibaby and easyJet, as passenger levels rose by 16%. Ryanair will commence operations from the airport in 2005.

A 13% rise in passenger numbers at Bournemouth airport was attributed to new Ryanair services to Spain and increased Channel Island traffic. Humberside airport bucked the low-cost trend and showed steady growth in the charter sector.

A 48% leap in operating profit to £89.3m ($167m) in the year to March 31 was attributed to the rise in passenger numbers and a two-year restructuring and rationalisation programme.  Group revenue increased from £328.2m ($614m) in 2002/2003 to £352.9m ($660m) in 2003/2004.

Group chief executive Geoff Muirhead said: "I am delighted to report on an exceptional financial performance. The trading environment, while fragile, has improved over the last year, albeit with increasingly demanding security requirements. However, we recognise that we cannot be complacent. The industry is becoming increasingly competitive, both in the UK and Europe, and MAG must improve its current efficiency and effectiveness to realise its long term goals."