Industry Analysis & Industry Trends
Airports industry revenue is projected to grow an annualised 1.2% over the five years through 2011-12. Demand for air travel was growing rapidly in the years prior to the recession, driven by strong income growth and significant demand from foreign tourists. During 2011-12, revenue is expected to grow a modest 1.9% to total £6.10 billion, due to a slight improvement in air travel activity.
Operating profit margins are expected to be 20.4% in 2011-12, growing from 10.1% in 2006-07. Margins grew as airports wound back large expenditures in capital investments. As the capital expenditures conclude, profit margins are estimated to increase to 22.2% in 2016-17... purchase to read more
Industry Report - Industry Locations Chapter
London is home to three airports: Heathrow, City and Stansted. Revenue generated by these airports accounts for 55% of the industry total, including revenue from fixed-base operators, which provide ground-handling services for airlines. The London region is the most significant in the industry, as it has a dense population, is the business centre of the country and the largest tourist attraction. Over the past five years, revenue from the London region has grown at a faster rate than the rest of the industry. This is due to the loosening on regulation on landing charges at Heathrow, which resulted in a significant increase in revenue for the airport... purchase to read more