Terminal 3 expansion and store closures impact Copenhagen Airport’s first-half commercial revenue: Moodie Davitt Report

DENMARK. Copenhagen Airports (CPH) yesterday reported a 6% year-on-year increase in non-aeronautical revenue in the first half of the year to DKK 929 million (US$137.1 million) and a 24% increase in total revenue to DKK 2,355 million (US$347.5 million).

Total revenues from non-aeronautical services and concessions failed to keep pace with the 12% increase in passenger numbers compared to the previous year.‘Copenhagen Airport, the city’s flagship, rose to 13.8 million.

Copenhagen Airport Shopping Centre’s concession revenue increased 6% year-on-year to DKK 391 million (USD 57.7 million).

Copenhagen Airport attributed the increase to rising passenger numbers, but said the positive effect was partially offset by the closure of several food and beverage outlets and specialty stores due to the ongoing expansion of Terminal 3. The closure and reconstruction of convenience stores in the first quarter also had a negative impact on revenue.

In order to offer travelers more space in the future and to make room for a wider range of shops, restaurants, a larger baggage claim area and more capacity for border control, the T3 area between Gates B and C will be expanded.

Increased passenger numbers were the main reason for the 14% year-on-year increase in parking revenue to DKK 196 million (USD 28.9 million).

Group profit before tax increased by +354.6% to DKK 491 million (USD 72.4 million) due to higher sales.

“I am very pleased with the significant improvement in our earnings compared to last year,” said Christian Poulsen, CEO of Copenhagen Airport.

“The desire to travel continues to grow. We can feel this at the airport too: the terminals are bustling with activity and satisfied travelers almost around the clock.”

Commenting on the disruption caused by the T3 work, Poulsen added: “We must ensure that we remain an efficient airport that is attractive to airlines and passengers alike. The new terminal area, scheduled to open in 2028, will provide an even better passenger experience.

“Part of the shopping centre will be closed during construction, but we are doing everything we can to ensure that the work causes as little inconvenience to passengers as possible.”

Asia is recovering but still not reaching pre-COVID levels

On a more positive note, Poulsen noted a strong increase in traffic to Asia. In the first six months of the year, more than 376,000 passengers travelled on a direct connection between Copenhagen and Asia, an increase of 35% compared to the previous year.

“We are pleased that traffic on routes to Asia is recovering. Some airlines continue to face the challenge of having to avoid Russian airspace, so it is positive that traffic is increasing anyway. However, passenger numbers between Copenhagen and Asia are still down 37% compared to pre-pandemic levels,” commented Poulsen.

Looking ahead, the company said: “In 2024, CPH expects further growth in passenger volumes, which will lead to increased profitability. However, the economic outlook remains uncertain due to ongoing geopolitical and macroeconomic impacts. Any deterioration in these factors could negatively impact travel sentiment and CPH’s financial outlook.” ✈