I am delighted to report that Munich Airport has once again achieved positive results in the fiscal year just ended. With revenue of a good 1.5 billion euros, we generated around 2.7 percent more in 2018 than in the previous year. While earnings before tax (EBT) are down by around 3.5 percent to just over 221 million euros, this was due to the major investment projects underway in the area of maintaining and expanding our infrastructure; projects which will equip Munich Airport for the future.
The traffic figures have likewise been very positive: 46.3 million passengers flew from or to Munich in 2018, 1.7 million or 3.8 percent more than in the previous year – a new record. Despite Transavia Airlines pulling out of Munich, and Air Berlin ceasing operations completely, the number of aircraft movements rose to more than 413,000 take-offs and landings, 2.2 percent more than in 2017. This also means, however, that the two-runway system is being stretched to its limit.
Construction of the planned third runway can no longer be pursued at present following the agreement reached last autumn between the ruling coalition parties, the CSU and Freien Wähler (Free Voters), to impose a five-year moratorium. The capacity bottlenecks already being experienced will consequently be tightened in the coming years. Airlines will therefore find it increasingly difficult to offer additional flights from and to Munich, and to meet the rising demand for mobility from both the general public and the business community in Bavaria.
The company is currently broadening its position and developing new fields of business. Increasingly, we are offering our expertise in the area of relocation, planning, construction, and operation to other airports worldwide. Our subsidiary Munich Airport International GmbH is currently very active in the U.S. At the same time, with LabCampus, an innovation center is being created in the west of the airport premises, on an area measuring 500,000 square meters, that will initiate cross-sector, technological developments and be an international meeting point for renowned companies, start-ups, and research facilities. Our new company headquarters is to be built there.
Facing new challenges
This year’s integrated report is very deliberately focused on the topic of «shaping the future». With that we want to show that we are actively engaging with the three major challenges currently facing Munich Airport: the need to expand our infrastructure, the generational change, and the megatrend that is digitalization. Each of these challenges also brings with it opportunities. We have therefore introduced a range of measures to utilize these:
- We are investing massively in our infrastructure. Terminal 1 has been showing its age, so we are renovating and expanding it. Planning approval was granted in 2018 and construction works already started on the apron in April this year. A new, attractive passenger handling area with a pier for up to twelve aircraft will be completed here by 2023.
- We are making increasing use of digital solutions for new services. The key phrase here is ensuring as seamless a journey as possible. We want to serve air passengers an attractive offering along the entire travel chain. Useful applications for smartphones, and test runs with artificial intelligence are just a few examples of the digital solutions that FMG is currently exploring.
- We are also responding to the generational change. Many experienced colleagues who have helped to make the airport what it is today will be retiring in the coming years. As a result, we, as an employer, will be stepping up our recruitment of young employees, who will bring new values and expectations. That Munich Airport once again numbers among the 20 best employers in Germany is a strong testament to our HR policy.
As you can see, there is a lot going on. We will be doing everything to ensure that our airport retains its 5-star quality level. We are confidently building the future of our company on the foundations of our strong economic position.
Creating a new location for innovation
To finish, I would like to thank most sincerely everyone who contributed to our success: the airlines, the passengers, our business partners, shareholders, and most especially our employees. Together with you, we want to shape the future at Munich Airport.
Dr. Michael Kerkloh