Manchester Airport Group has grown its share of the UK aviation market by 0.4% to 15.8%, increasing passenger numbers across the group by 1.5m to 24.0m, which represents the first annual increase since 2008.

Revenue has grown to £373.2m, an increase of 8.6% on the prior year, reflecting growth in both aviation and commercial income.

Revenue growth was strong, even after adjusting for the impact of the volcanic ash cloud which disrupted air services in the UK during Spring 2010. Adjusting for this, revenue growth was £23.9m (6.8%) higher than the prior year.

Aviation revenue follows the increase in passenger volumes through new and more frequent routes and more airlines.

Commercial income reflects growth in retail and car parking revenues, driven by new offers, such as the ‘fast track’ security product, ‘pre-book’, ‘valet’, and ‘meet and greet’ parking products. Retail revenue has benefitted from a focus on maximising space with short term lettings and ‘pop-up’ concessions.

The largest airport in M.A.G’s portfolio, Manchester Airport, increased revenue to £282m, up 9.5% on 2010-11, with passenger numbers growing 1.4m to 19.1m and representing twelve months of consecutive growth.

Manchester delivered ten months of consecutive market share gains during 2011-12 by introducing new carriers and securing further growth from existing airlines. Aviation revenue increases were driven by growth from Middle Eastern long haul and routes provided by low cost carriers.

Chief Executive, Charlie Cornish said: “This year has been a period of transformation for M.A.G during which we have delivered strong performance against stretching targets in the context of tough global trading conditions for the aviation sector. It has been a great start on our journey towards becoming the premier airport services business”

MAG Developments, the Group’s property and facilities management arm, manages a property portfolio valued at over £350m, yielding a property income which has grown by £4.4m during the year to £31.4m.

In January 2012, George Osborne formally launched the £650m Manchester Airport City project which is aimed at transforming Manchester Airport from a regional transport hub into a global business destination in its own right, over the next ten to 15 years, building on the Enterprise Zone status awarded for the area by the Government in 2011.

The Group also completed the new £22m Radisson Blu hotel at East Midlands Airport. Two of M.A.G’s airports (East Midlands and Bournemouth Airports) became the first airports in the UK to announce carbon neutral ground operations during the year. M.A.G first made the commitment in 2006 and has over the past six years invested in innovative techniques and projects aimed at reducing energy usage and championing renewable energy.

Manchester Airport has invested £2m in energy saving projects over the past 12 months, resulting in a 16% reduction in electricity usage and the airport is on course to achieve the target of carbon neutral ground operations by 2015.

Summarising, Charlie Cornish, said: “M.A.G has grown strongly in the year and the journey to becoming the premier airport management and services company is underway.

“Although the general economic backdrop is not favourable, the Group is positioned to take advantage of airline growth opportunities, which will allow the continued out-performance of the UK passenger market, ensuring that this profitable growth drives better product offerings commercially and greater efficiencies.”