A rise of almost 300,000 passengers through the doors of Aberdeen Airport led to a steep rise in profits last year.
Newly published accounts at Companies House show turnover rose to £51.9 million at Aberdeen International Airport Ltd in 2023, an increase of 12% from £46.3m in 2022.
Pre-tax profits soared to £6.8m last year, up from £266,000 in 2022.
Passenger numbers at Aberdeen Airport rocketed to 2.3 million last year, with international traffic soaring by 24%, bumped further by a 9.3% increase in domestic users.
Aberdeen Airport making profits and investment in ‘passenger experience’
Investment in major works at the airport totalled £2.6m for 2023. This built on the £2.3m spent on upgrades back in 2022.
In his strategic report with the accounts, director Andy Cliffe outlined improvement works on “passenger experience” and “operational readiness” at Aberdeen Airport.
“Major projects included the ongoing programme of airfield pavement re-lifing works, surface access barrier equipment replacement and essential re-lifing works to major assets within various operational buildings including roofs and electrical infrastructure,” he said.
“Investment to improve passenger experience and operational readiness included the purchase of new security and airfield winter equipment and passenger baggage trolleys replacement.
“Sustainable projects to reduce the carbon footprint of the airport included air handling unit replacement and electric vehicle charging points purchase.”
Looking ahead
Looking ahead to the current year, the company expects passenger numbers to continue to recover.
It points to a “positive” oil and gas industry, with the government announcing new licenses to strengthen the UK’s energy security ahead of a transition to net zero by 2050.
This is underpinned, says Cliffe, by local companies continuing to diversify into the renewables sector.
“Achieving the Aberdeen International Airport Limited’s vision relies heavily on Aberdeen Airport being managed in a socially responsible manner,” he said.
“This means enhancing the airport’s social and economic benefits whilst reducing our environmental impacts.”
He said Aberdeen Airport takes pride in the “valuable contribution” it makes to the local economy.
He adds: “In terms of generating employment and providing the vital connectivity that allows the local region to thrive.”
The success of the airport is further highlighted by Aberdeen and the north-east experiencing a tourism boom last year.
This has led some to speculate the airport might add extra routes to its network.
Asked about this, Cliffe said AGS “is always in discussions with airline partners”. He said it was “looking at the route networks across its airports”.
Aberdeen Airport’s parent company, AGS Airports Limited, which also operates airports in Glasgow and Southampton, also saw a rise in turnover last year.
Sales grew from £166m in 2022 to £195m last year while pre-tax losses reduced from £36m to £10m in 2023.
Conversation