Teesside airport continues to face “significant financial and operational challenges” despite reporting its first profit in more than a decade.
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.
This will make it difficult for airlines to plan ahead to support new routes and bases, on top of the longer-term effects of the Covid-19 pandemic on the aviation industry, according to officials.
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 its half-way stage.
“The review will inform future airport strategy in response to market changes,” a statement issued by the airport near Darlington said.
Accounts for the year to March 2023 confirmed earnings [ebitda] of £308,555 on annual revenues of £14.5million – the first profit at any level since 2012.
Emergence from the red is “well ahead” of the airport’s financial plan and came after Teesside achieved its highest passenger numbers for more than a decade due to high demand for flights to Spain, Portugal and Turkey.
Airport managing director Phil Forster said: “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 said: “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.”