Drop in passenger numbers continues to affect CPH

The total number of passengers dropped 7.1% in Q3 2009 compared to last year. The first nine months of 2009 saw a 10.9% lower number of passengers than in the same period last year, but it was an improvement compared with the first six months of 2009 when traffic was 13.0% lower than last year. This improvement was achieved due to the reasonable traffic level during the summer, with a number of airlines continuing to expand and open new routes.

“Although a number of airlines continue to expand and open new routes and Q3 has shown and improving trend relative to the first half, we have to say that times are generally hard for the industry. This has a clear effect on our financial results, and we can see that 2009 will be one of the toughest years ever for the aviation industry, said Copenhagen Airports CEO Brian Petersen.

Investing in better service
CPH’s revenue dropped by 6.6% to DKK 2,217 million, and pre-tax profit was DKK 668 million, which was 27.5% less than for the first nine months of 2008.

CPH faced higher depreciation charges as a result of investment in service improvements, increased one off staff costs due to restructuring, and higher financial costs following a refinancing completed earlier this year]. Combined with the falling trend in passenger numbers, these factors had a negative impact on both revenue and earnings.

Increase accessibility
“To reflect the difficult economic environment, we adjusted our organisation earlier this year, and we’re going to have to look at our income side going forward. We need to grow by adding more routes and attracting more customers, which will also improve access to the region, said Petersen.

In the course of the third quarter 2009, CPH signed a 5½-year agreement on the charges paid by airlines for use of Copenhagen Airport, which took effect on 1 October 2009. The charges structure was changed and charges were frozen for the initial 18 months of the term of the agreement. After the end of that period, the total airport charges will increase equivalent to development of the Danish Consumer Price Index (“CPI plus one per cent. The agreement sets out the level and the structure of charges that the airlines will pay for the use of facilities at Copenhagen Airport in the period from 1 October 2009 to 31 March 2015.Develop

Copenhagen as a destination
Under the charges agreement that became effective October 1st 2009, CPH also undertakes to invest DKK 2.6 billion in expansion and improvement of facilities such as baggage handling, passenger bridges, gates and check-in facilities for the benefit of both airlines and passengers - investments which will strengthen the competitive position of Copenhagen Airport vis-à-vis other northern European airports. CPH is committed to developing Copenhagen as a hub and destination. CPH will be working with local and national government as well as private companies and airlines to market Copenhagen and Denmark abroad.

“We have a responsibility to keep on helping develop Copenhagen as a destination, and will be investing heavily in the coming years in developing and improving the airport to benefit network and low-cost airlines and especially passengers. The new charges agreement supports that, said Brian Petersen.