Teesside Airport

Announces a

Return to Profit.

Or Perhaps, Not

Teesside Airport Departure Lounge

Scott Hunter

14 August 2024

Yesterday, Teesside Airport announced that it has turned a profit for the first time since 2012. Cue widespread press coverage, including ITV Tyne Tees and the Yorkshire Post. Cue also fanfare, and an enthusiastic report on Houchen’s Facebook. And, in turn, a chorus of “Well done, Ben!” from that small section of the Tees Valley’s electorate that have not yet been blocked by him on social media.

And the jaws of Houchen’s critics dropped in disbelief. But that was yesterday.

A little further investigation reveals that the disbelief is well founded. What was intended as another big day out for the Houchen propaganda machine then turned sour. It appears that certain sections of the media have finally come to realize that TVCA press releases can not be taken at face value. And both airport managing director, Phil Forster, and mayor Houchen  have been caught in the headlights.

What was initially reported in the press was that the airport showed a profit for the first time since 2012. This ‘profit’ is EBITDA – earnings before interest, tax, depreciation and amortization. According to the airport’s press release,

“Accounts for the year to March 2024 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.”

Some of Houchen’s critics have been questioning whether this is the product of creative accounting. As did the local democracy reporter, Gareth Lightfoot, who went on to ask Forster the awkward question as to whether there was also an operating profit. The reason he had to go and ask the question is that the airport issued its press release in advance of its annual accounts being published.  So, was the airport rushing out the good news before the full evidence was available? It looks like it. As it turns out, the airport had an operating loss of £3 million.

Announcing the EBITDA ‘profit’ gave Forster the opportunity to send out some other bits of good news about the airport. As ITV Tyne Tees reported yesterday,

“Phil Forster of Teesside Airport told ITV Tyne Tees the growth is both thanks to the passengers and the business park; noting companies like FedEx who are on the site along with businesses like Airbourne Colours which are soon to join.”

As the deal whereby Fedex switched its base from Newcastle Airport to Teesside was first reported by the BBC on 18 March this year, whatever revenue that brings will not be included in the 2023/24 accounts. Furthermore, no details of the inducements offered to Fedex by Teesside Airport have appeared in the public domain. 

As for Airborne Colours, the hangar that it will occupy is still a construction site, and so generates no income for the airport:

Teesside Airport Hangar 4, under construction

There is, of course, the Southside Business Park, which we visited this morning. Stockton Council Planning Department records show that permission has been granted for the construction of four warehouses. Only one has been built, and there is no sign of any further construction work on the site.  Here is the site as we found it this morning:

Teesside International Airport (Southside) Business Park on 14 August 2024

There have been rumours that a tenant has been found for the single completed unit, but, if that is the case, staff will have some difficulty getting to work (unless of course it’s a firm of locksmiths). No smart gatehouse for this facility, just some Heras fencing, a security camera and a padlock.

As for aviation, data by the Civil Aviation Authority, show that the airport handled 231,496 passengers between April 2023 and March 2024. ICF Consultants, commissioned by TVCA before the purchase of the airport, predicted that the development of the international holiday market would result in passenger number of 337,000 by 2024, or just under 1.5 million were there a low cost carrier at the airport:

So, airport MD, Phil Forster, seems to be thanking a lot of people who actually didn’t contribute to airport revenue in 2023/24.



Once the accounts are published we will undoubtedly discover that the reality is somewhat different from what has been circulated by the TVCA publicity machine. One reason why we consider that the reality will be different is this. The airport press release refers to EBITDA profit. The accounts published by Companies’ House for 2022/23 do not give EBITDA, so we cannot make direct comparison between the two years. However, the press release also states that turnover for 2023/24 was £14.5 million. The 2022/23 account gives turnover for that year as £15.5 million. So, profitability goes up as turnover comes down in Teesside Airport world. In 2022/23 accounts showed a net loss of £4.5 million:

From Teesside International Airport accounts year ending March 2023

Operating losses at the airport continue to be enormous, and it is wholly unclear why they should be so large. One aspect of this has to be that the company is putting money into investments like Hangar 4 that will take a long time to recoup.  The Southside business park may not now be costing much, but it is generating no revenue whatsoever.

So, we return to the question of whether, when the accounts are finally made public, we see evidence of creative accountancy after all.  It is a relief to see that some progress in the media in challenging the narrative of Teesside Airport and the TVCA. We are still waiting for the government to put its money where its mouth is and follow suit.