Manchester Airports Group (MAG), the owner of Manchester, London Stansted, and East Midlands airports, has reported a slowdown in passenger growth to 1.9% for the year ending 31 March 2026, reaching 66.3 million passengers, compared to 6% growth in the prior year. The group attributed the deceleration to the ongoing Iran conflict but emphasized its resilience and commitment to investment.
Passenger Performance Across Airports
Manchester Airport delivered the strongest performance among the group's terminals, with passenger numbers rising 3.6% to 32.3 million, though this was a significant drop from the 8% growth recorded in 2024-25. London Stansted saw passenger numbers edge up by just 0.4%, compared with a 4.9% increase the previous year. East Midlands Airport experienced a 1.3% decline in passenger numbers.
Despite the slowdown in footfall, pre-tax profits for the parent group climbed 4.5% to £227.4 million for the year ending March, as revenues surged 12.8%. Cargo volumes rose 12.5%, driven primarily by strong growth at East Midlands Airport, the UK's largest pure freight airport, which accounted for a third of all UK cargo growth. Seven new airlines started operations at East Midlands in the past year.
CEO Highlights Record Volumes and Investment
MAG CEO Ken O'Toole said: “We are pleased to release these solid results, underpinned by record passenger volumes at our airports. That reflects our steadfast focus on maximising the choice of direct destinations people can access through our airports, which serve catchments areas covering 70% of the UK population.”
O'Toole noted that MAG has continued to invest for growth, particularly by delivering the final phases of Manchester Airport’s £1.5 billion Transformation Programme. This programme unlocks spare capacity on its existing two runways and paves the way for the airport to play a greater role in the creation of a globally competitive Northern Growth Corridor. He added: “We were pleased to secure permission to grow passenger numbers at London Stansted up to 51 million and are poised to deliver a £1.1 billion investment programme to take us towards that.”
Concerns Over Business Rates
O'Toole stressed that the UK airline industry needs to “reach a predictable, proportionate, fair and objective agreement” with the government on business rates to support its investment plans. He stated: “Our long-term ability to continue growth-enabling investments of this nature is influenced by the fiscal environment in which we operate. The current government has been hugely supportive of aviation in policy terms, but risks undermining that with a tax regime that creates a barrier to investment-led growth.”
MAG’s business rates have already more than doubled, and there remains no clarity on what airports’ future liabilities will look like. The group recently responded to a government consultation on business rates, stating that any change needs to deliver outcomes that are fair, predictable, proportionate, and encourage future private sector investment.
Resilience and Outlook
O'Toole highlighted that the diversity of MAG's business, including its services arm CAVU, provides resilience. He added: “The diversity of our business gives us a resilience that leaves us well placed to navigate the macroeconomic factors our industry faces and look forward to delivering a robust summer season.”
The results come as the broader aviation sector continues to grapple with the repercussions of the Iran-US conflict. Heathrow Airport revealed last month that it anticipates passenger numbers to fall by 1.1% this year as a direct consequence of the conflict, projecting between 80.1 million and 84.5 million passengers, down from 84.5 million in 2025. Heathrow stated that its forecast for 2026 reflects the risk that continued volatility in the Middle East could dampen broader traffic volumes, with impacts extending beyond the region to global travel demand. An interim peace deal was signed by Iran and the US late last month.
