Letter from the Executive Board
2016 was another extremely successful fiscal year for Munich Airport. At just under 1.4 billion euros, Group revenue increased by nine percent year on year. Earnings after taxes (EAT) rose to 152 million euros.
This is an outstanding financial result that exceeded our expectations. Among other things, this reflects the further sharp rise in traffic at our airport: with 42.3 million passengers, we were able to record three percent growth and set a new passenger record. The number of aircraft movements also continued to rise to over 394,000 take-off and landing procedures – almost four percent more than the previous year – and we expect this trend to continue in the coming year too. Passengers voted Munich Airport the best in Europe and one of the best in the world for an impressive tenth time in twelve years. They value the high-quality facilities and services as well as the excellent connections from Munich.
Our airport is in an excellent position for a successful start to the next 25 years.
The success of our airport is the result of a superb team effort. I would like to take this opportunity to extend my sincere thanks to all who have contributed to the successes of the past year: to our customers, the airlines, the passengers, and the companies on the airport campus. To our employees, our business partners, our suppliers, our shareholders, and our neighbors in the surrounding districts.
We hope that in the years and decades to come, our airport will remain at least as successful as it has been so far. This requires us to meet the hopes and expectations of our various stakeholders, to find good solutions to their needs, and convincing answers to their questions. What will people expect of us in future? What can we do now to meet the expectations of the generations to come? That is the very definition of sustainability and is precisely what the «Thinking ahead» mission statement for this integrated report is getting at.
Thinking ahead to the future
This is Munich Airport’s way of saying that it is actively tackling the challenges of the future and has already laid important foundations over the past fiscal year 2016:
- Thinking ahead means ambitious climate protection. In 2016, we significantly increased our climate protection goals even further: Munich Airport will be the first German airport to boast fully climate-neutral operations by 2030 in terms of the emissions it generates.
- For us, thinking ahead means expanding our services and adapting to our customers’ future needs. That is why we and our partner Deutsche Lufthansa have invested almost one billion euros in the new satellite terminal, which opens up capacity for eleven million passengers a year. I am very proud that we were able to open the terminal on schedule and within budget in 2016 and that it is being so well received. The next step in our investment campaign is now to refurbish and expand Terminal 1.
- Thinking ahead also applies to our new digital strategy. In future, we will be providing passengers, business partners, and visitors with innovative digital services along the entire travel chain, for example for parking or tracking luggage. In a connected world, flying begins and ends in our living rooms at home.
A strong financial position creates entrepreneurial freedom.
- Thinking ahead as an employer means that we must start looking for tomorrow’s young talent today. We know that we will not retain a specialist workforce unless we offer attractive jobs and convincing solutions for issues such as balancing family and career, flexible working, onward training, and diversity. We have done a really great job on this front so far: in January, Munich Airport was once again crowned the best employer in the transport and logistics sector in Germany.
- Thinking ahead means that we take our responsibility toward the people in our neighborhood seriously. We are fully aware that a major passenger airport is a burden to its immediate surroundings. This makes it all the more important to keep the negative impacts to a minimum.
- Thinking ahead also means laying the foundations for further growth now. Munich Airport is working at full capacity and can only meet the demand of the next decades with a third runway. No other expansion plan in Germany has the backing of such a big alliance of over 200 companies and associations. These companies know that the enormous significance of Munich Airport in terms of the economy, the lives of local people, and its role as an employer depends on its function as a hub and its fantastic connections to destinations all over the world.
- However, we also understand the concerns that quite a few people in the region have raised about the planned expansion. We therefore consider it essential to develop solutions that everyone involved is ultimately happy with. We are actively promoting dialog in the region because we know that we can only move forward with the help of our neighbors.
Anyone who has been here once is happy to return. This is all thanks to our employees, who are really on board with the service concept.
Thinking ahead means recognizing today what is needed tomorrow and to establish the necessary conditions. This requires openness, expertise, innovation, persistence – and a little courage too. These are all characteristics that set Munich Airport and its staff apart and have facilitated the fantastic development that we began 25 years ago with our move to Erdinger Moos. We will celebrate this anniversary with great pride in 2017. This is just the motivation we need to continue the Munich Airport success story in future.
Dr. Michael Kerkloh