UK aviation: MAG reports 48% EBITDA margin; prospects examined across its airports – part one

Full-year financial results (calendar year 2022) will not be announced by most airports and airport groups for a month or so yet, so a half-year result from Manchester Airports Group, which witnessed disruption in the first four months of 2022 owing to severe staff shortages, merits consideration.

The resilience of airports is again evident, with the Manchester, Stansted and East Midlands group recording positive operating profit and EBITDA, and with the EBITDA Margin close to 50%.

It is also an opportunity to look at construction activities at the group's airports and especially at Manchester, the torch bearer for 'levelling up' in the UK air transport business. That construction includes an extension to what is possibly the biggest terminal in the country already, and also an 'Airport City', partially Chinese-funded, which has stalled somewhat during the COVID-19 pandemic.

Part one of this two-part report looks at the financial performance and explores the prospects for Stansted and East Midlands airports.