Annual Report and Accounts 2010-11 - Manchester Airport

14Financial ReviewPassenger trafficPassenger traffic is 4.6% lower than the prior year, ofwhich approximately 2.1% is attributed to the impact of thevolcanic ash. The Group has seen an encouragingincrease in the number of passengers on scheduled longhaul flights, which is as a result of the increase in routes tothe Middle East. This follows the investment in theEmirates executive lounge in 2010 and thecommencement of the A380 service at Manchester duringthe year. Passenger numbers on short haul flights havedeclined 6.8% on the prior year, impacted by the volcanicash, strike action at BA and the strong competition fromland transport, particularly on routes to Scotland andLondon.Passengers by airline typeTotal 22,790 (000’s)CargoCargo volumes increased by 6.4% to 435,000 tonnes(2010: 409,000 tonnes) during the year. The Group’s corecargo business is at East Midlands Airport, the UK’slargest pure freight and mail hub. The airport represents70% of the Group’s cargo business by volume, anddelivered a further year of encouraging growth of16,100 tonnes (5.5%) from this established base. Thecargo operation at Manchester has been growing from arelatively small base over recent years, and generated a9,700 tonnes (9.1%) improvement over the prior year.CargoTotal 435 Tonnes (000’s)East Midlands307.5Charter shorthaul 5,349Scheduledshort haul12,965Manchester 116.7Bournemouth 9.9Humberside 0.9Scheduled longhaul 3,015Passengers by airportTotal 22,790 (000’s)East Midlands 4,076Bournemouth 699Humberside 287Charterlong haul1,457Private and miscellaneous4Manchester17,728Trading performanceGroup revenue of £350.2m increased by 0.4% as a resultof continuing the improvement in commercial revenue perpassenger, despite the declining passenger volumes.Aviation yield has increased by 4.4%, the increase beingdue to a reduction in the proportion of lower yielding offpeaktraffic, a change in mix towards long haul flights, andthe continued concentration on growing more profitablebusiness. The reduction in passenger numbers hasresulted in aviation income being £1.5m lower comparedto the prior year, a reduction of 0.9%.The retail business has generated a 6.2% increase in retailincome per passenger. The business continues to benefitfrom investment in improving retail and security facilities atits airports, which has enhanced the passengerexperience. Overall retail income of £69.8m has fallen by£0.6m, a reduction of just 0.9%, which is attributable to thereduction in income experienced as a result of thevolcanic ash business disruption and after adjusting forthis, income is estimated to have grown by 1.1%.The Manchester Airport Group PLC Annual Report and Accounts 2010-11