Business traffic hits turbulence but airport confident for future

According to the company's latest annual report, 2.75 million passengers flew from the hub during the year to March 31, 2009.

The company, which is owned by private equity firm Bridgepoint Capital, said passenger numbers were ahead of the year during the summer season and dropped back during the winter period when there is traditionally more focus on business traffic.

Commercial director Tony Hallwood said: "We saw a reduction in business traffic due to the recession.

"In spite of these difficult conditions, our four per cent decline was one of the best performances in the UK. Most other regional airports saw reductions in passenger traffic between five and 25 per cent.

"That's down to the resilience of the Yorkshire economy and our location and links with other cities in the UK. Since March, although business traffic has continued to decline, that has been balanced out by continued growth in international traffic."

Turnover for the period remained flat at 21m and company reduced its pre-tax loss to 2.7m, from 4.7m in 2008.

The result includes an exceptional credit of 446,000 relating to restructuring costs, profit on disposal of land and exit from the West Yorkshire Pension Fund.

Bridgepoint bought the airport from West Yorkshire's five councils in 2007. Last year it outlined a 70m masterplan designed to improve facilities and increase passenger numbers to 5.1 million a year by 2016.

During the period covered by the latest report, Leeds Bradford Airport added new routes including Avignon, Hamburg, Madrid, Jersey, La Rochelle, Sardinia, Cyprus, Crete, Sharm El Sheikh and Gerona. In addition, a series of flights went direct to New York in the run-up to Christmas 2008.

The airport also secured a service with Flybe to Gatwick after the flight to Heathrow, operated by BMI was stopped and a third weekly flight was added to the Islamabad route, operated by Pakistan International Airways.

Mr Hallwood said: "The performance of the summer was very strong and we continue to add new destinations every year. In 2008 we added eight new destinations, in 2009 it was nine and there are 10 for 2010.

"We have a medium-term strategy, increasing destination choice, frequency and offering passengers more but since leaving the public sector we have had some restructuring costs to deal with."

Last year, low-fare airline Ryanair announced it would create about 1,000 new jobs by setting up a base at Leeds Bradford Airport. The carrier said it was switching routes from its base in Manchester to Leeds Bradford.

Mr Hallwood said: "We are looking forward to the future with confidence."

He added that it was too early to say if the airport will make a profit by the end of the current financial year. "The economic climate continues to be challenging but we have all the building blocks in place to allow a successful start to 2010," he said.

Stepping up the marketing campaign to potential passengers in Yorkshire is one of the company's immediate priorities.

Mr Hallwood said: "One of the main challenges is to ensure that potential passengers who live in the catchment area – within an hour's drive from the airport – know about it.

"We now fly to 75 destinations in 29 countries and we have got to make sure that our passengers are aware of the potential."

He added: "We are hoping that the economic recovery starts and continues to grow in 2010 and 2011 which means a return to growth in the business sector.

"We are seeing a small upturn in the financial services sector which is reassessing its position and looking for opportunities for growth.

"We look forward to continued support of the Yorkshire business community and we are always here to listen to people's views about products and services."

Taking on the world

The 70m masterplan for Leeds Bradford Airport will see the expansion of the outdated terminal building in an attempt to improve facilities and increase passenger numbers to 5.1 million a year by 2016.

Owners Bridgepoint Capital, who bought the airport in 2007, say passengers travelling through the existing terminal building are beset with delays and congestion.

The proposed two-storey extension will offer a new departure lounge, shops and passenger screening zone and improved immigration facilities. But the airport operators will also have to pay 1m for road improvements and annual contributions of 228,000 towards local bus services.