"TBI Profits Fall Despite Rise in Passenger Numbers"

Thursday, June 10, 2004

TBI Profits Fall Despite Rise in Passenger Numbers
By David Winning
United Kingdom - PA News


Airports operator TBI remained upbeat today despite failing to translate a
15% rise in passenger numbers into higher profits.

The group said it was well placed to take advantage of the ongoing expansion
in budget travel, which is driving growth at its Luton, Belfast, Cardiff and
Stockholm Skavsta airports.

Low-cost traffic surged by 31% in the year to March 31, mainly because of
easyJet’s use of Luton and Belfast, Ryanair launching its base at Stockholm
and a full-year’s contribution from bmibaby at Cardiff.

Pre-tax profits before exceptional items eased to £23 million from £23.6
million, a fall partly blamed on increased interest charges. Higher one-off
costs also meant the bottom-line figure fell to £6.2 million from £11.2
million.

Despite the impact of the Iraq war and Sars virus at the start of 2003,
chairman Stanley Thomas reported an increase in terminal passengers to 17.5
million.

“I am pleased with this year’s achievements and believe they signal the
beginning of a turnaround in the fortunes of the aviation industry in
general and TBI in particular,” he said.

Although the impact of global uncertainty and a sustained rise in oil prices
“cannot be underestimated”, Mr Thomas said a structural change in the
aviation industry following September 11 was now complete.

This has seen passengers shunning long-haul flights in favour of travel to
destinations nearer to home.

TBI also operates Orlando Sanford airport in the United States which
suffered when US passengers opted not to fly in the wake of the September 11
attacks.

But the past year has seen 67% more US travellers pass through the airport
and a 21% rise in UK traffic.

Chief executive Keith Brooks said: “There is a clear indication of markedly
improved trading across our US businesses which is encouraging.”

Around £7 million was invested during the year to build a new taxiway and
three new aircraft stands at Luton to cope with higher passenger numbers.

New services were introduced by easyJet to Berlin, Dortmund and Budapest,
while the executive jet market also flourished with growth of more than 20%.

TBI, which was circled by German airports operator Hochtief last year, said
passenger numbers at Belfast exceeded four million for the first time.

Growth was underpinned by the launch of services between Belfast and
continental Europe through the addition of flights to cities including
Prague and Paris.

The opening of a new railway station near Cardiff airport was fuelling hopes
of passenger numbers in excess of two million this year.

TBI generates around 40% of revenues from travellers spending money on
products such as food and beverages, foreign exchange and car parking when
using its airports.

Turnover improved to £186.2 million in the past 12 months from £177.6
million a year earlier.

The company said it was sticking by its dividend policy and offered
shareholders a full-year payment of 2.3p a share.


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