Airport records its first profit for more than a decade

Teesside International Airport has reported its first profit in more than a decade after growth in passenger numbers and successful Business Park developments helped it move back into the black.

Accounts for the year to March 2023 confirmed an EBITDA* of £308,555 on annual revenues of £14.5million.

The return to profitability is well ahead of the airport’s financial plan and came after Teesside enjoyed its highest passenger numbers for more than a decade due to high demand for flights to Spain, Portugal and Turkey.

The 2023 UK and Ireland Airport of the Year also made progress on developing its Business Park, including completing construction of the first unit on Business Park South, a new link road to the development, and a new Northside hangar, that will soon house aircraft painting company Airbourne Colours.

The accounts show that the significant growth in property and estate development values have driven the airport’s investment portfolio by 173% over five years to almost £50million.

It is the first time the airport has reported a profit at any level since 2012.

However, Teesside also continues to face significant financial and operational challenges.

Growth in passenger numbers is now likely to be slower than targeted in coming years due to global supply chain and new aircraft delivery delays making it difficult for airlines to plan ahead to support new routes and bases, and the longer-term effects of the Covid-19 pandemic on the aviation industry.

A formal strategic review led by a leading independent accountancy firm has been requested to assess and revise the airport’s 10-year financial sustainability plan, which is at the half-way stage of its 2019-2029 duration. The review will inform future airport strategy in response to market changes.

Teesside International Airport Managing Director Phil Forster said: “This is a fantastic achievement and a reflection of the huge amount of hard work by all our staff to bring in new passengers, make the Teesside experience the very best it can be and develop our airport as a great location for businesses. I would also like to thank the airport’s board for their continued support in leading us forward.

“We still face strong headwinds but continue to have positive discussions with airlines to grow the number of routes on offer and will not stop in our work to deliver the ongoing success of the airport.”

Tees Valley Mayor Ben Houchen: “When we took back control of our airport I pledged that we would return it to profit, and we have now delivered on this well ahead of our financial plan.

“Not only have we brought back the sunshine destinations that the people of Teesside, Darlington and Hartlepool want, but we are also benefiting from the long-term development of the airport’s business park that is paying dividends by bringing well-paid jobs and major investment to the local economy.

“However, our work is far from complete. We are halfway through the 10-year turnaround plan and the world is in a very different place. So, it’s vital our plan is reviewed to reflect the new challenges and opportunities we face for us to continue to move forward on a sound financial basis.”

Stockton-on-Tees Borough Council Leader and TVCA Cabinet Member with responsibility for Teesside International Airport, Councillor Bob Cook, said: “It’s great news that the airport is performing well and the excellent transport links it brings to the Tees Valley puts us in an excellent position to continue to attract businesses and grow investment around the area.

“We know that we must not be complacent and the hard work will continue alongside partners to ensure the airport continues this very positive trajectory.”