Originally Posted by
Itchin McCrevis
LTNman - look at the figures you quoted versus passenger growth:
Passengers up 16.1%, revenue only up 10.9% - so either traffic income per passenger is dropping or commercial income per passenger is dropping - which do you think is more likely given their big new retail offering?
Revenue up £27m, EBITDA up £26m so only £1m increase in operating costs to service 16.1% growth in passengers - suggests they must be really screwing down operating costs.
Shed - I don't disagree, I doubt MAG have a cash problem so the growth in market value may be sufficient to allow them to be less concerned about short term rate of return (which may be on target anyway - we don't know what their assumptions were in their aquisition business plan).
More likely route incentives on new routes.
As for costs well how many additional people are required if pax numbers go from 23 to 24 millions ? Not really many.