/Annual Traffic Report 2013

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Air Traffic Statistics

Living ideas – Connecting lives

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Contents 1

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Scheduled/

charter

287,809 t

- 0.9%

Cargo

(commercial terminal

air freight and mail)

38.651

mill.

+0.8%

38.673

mill.

+0.8%

38.690

mill.

+0.8%

Total passengers

Commercial traffic

Non commercial

traffic

17.310 - 1.1%

9,941

- 1.1%

Scheduled/

charter

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Traffic trends at Munich Airport in 2013 and development 1992 - 2013 3

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Traffic trends at Munich Airport

in 2013

Munich Airport once again achieved a passenger record in 2013.

Just under 38.7 million passengers departed, transferred or

arrived at the airport at the gates of Munich. However, this result cannot hide the fact that Munich Airport has also been hit by the difficult overall situation in air transport in the past years. The euro crisis and falling economic output in many European countries are impacting the entire European aviation sector. The wave of consolidation in European aviation continues. Financially weaker airlines are fighting to survive or have already been forced to close their operations. The insolvencies of OLT and Sky Airlines also meant routes were discontinued at Munich Airport. All the other airlines are compelled to focus more on cutting costs and adjusting their fleets than on developing new routes and markets. In long-haul business, the European network carriers are driven by the market power of airlines from the Gulf region, and increasingly Turkey, which successfully transport passengers from the European markets via their hubs. The general economic and political conditions enable these airlines to compete successfully with established European ones thanks to an excellent product at an attractive price.

In turn, the success of the low-cost providers is forcing the network carriers into a battle to compete on the European

market. The two major German airlines have been forced to take harsh economy measures. Lufthansa, for example, has shifted unprofitable European traffic to its subsidiary Germanwings as part of the "Score" program for

decentralized traffic activities and now only caters for it at the hubs with its own craft. airberlin is also trying to post positive operating income again in future by means of cost-cutting programs and by focusing on Berlin. In addition, German airlines are excessively burdened by the air traffic tax that was introduced in 2011, in particular for domestic travel, where tax is due both on the outbound and return journeys and German value-added tax is also charged. The air traffic tax is charged only once on flights abroad and they are exempt from value-added tax.

Munich Airport was also not able to evade these developments. Despite a declining number of flight

movements, the number of seats available was nevertheless maintained at the level of the previous year and a record load factor achieved at Munich.

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Traffic trends at Munich Airport in 2013 and development 1992- 2013 4

Development of air traffic at Munich Airport 1992-2013

Aircraft movements – total traffic (in 1,000)

Passengers – commercial traffic (in mill.)

Air freight and air mail incl. transit (in 1,000 tons)

19 2. 2 19 2. 2 19 9. 8 21 4. 0 23 3. 3 26 7. 8 27 8. 4 29 9. 1 31 9. 0 33 7. 7 34 4. 4 35 5. 6 38 3. 1 39 8. 8 41 1. 3 43 1. 8 43 2. 3 39 6. 8 38 9. 9 41 0. 0 39 8. 0 38 2. 0 0 100 200 300 400 500 600 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 12 .0 12 .7 13 .5 ₁₄.9 ₁₅.7 17 .9 ₁₉.3 21.3 23 .1 23 .6 23 .2 24 .2 ₂₆.8 28 .6 ₃₀.8 34 .0 34 .5 32 .7 ₃₄.7 37 .8 38 .4 38 .7 0 10 20 30 40 50 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 56 .8 65 .3 71 .8 70 .5 ₈₂.9 10 3. 6 10 3. 9 12 3. 3 13 3. 2 13 5. 0 ₁₆5. 9 15 6. 1 17 7. 0 ₂₀8. 7 23 1. 7 25 7. 9 25 6. 8 22 9. 0 28 9. 5 30 3. 0 28 7. 1 28 4. 5 25 .6 30 .1 30 .8 35 .8 35 .1 28 .1 23 .1 23 .4 23 .3 22 .7 22 .5 22 .0 21 .4 15 .2 13 .7 14 .5 17 .7 13 .1 12 .1 17 .5 18 .1 17 .8 0 100 200 300 400 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 Air freight Air mail

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Aircraft movements 2013 5

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Aircraft movements 2013

6 Movements - development 2013

7 Aircraft movements 2013

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Aircraft movements 2013 6

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Movements - development 2013

Trend towards larger aircraft continues

The number of flight movements declined again in 2013. The declines were mostly at times of weak demand, such as on weekends, during holiday periods or on public holidays. The crucial peak traffic times in the morning and afternoon remained unchanged. As a result, Munich Airport continues to be stretched to its capacity limits over a period of several hours a day.

Nevertheless, the number of seats offered was able to be maintained at the high level of the previous year. The number of take-offs and landings is primarily a consequence of the unbroken trend towards replacing smaller craft by larger planes, above all in the short- and medium-haul arenas. The Embraer195 with 112 seats is now the most frequently used type of aircraft. The Embraer jet is mainly used instead of the smaller 70-seaters such as the Canadair CRJ7, Dash8 and ATR72. In addition, the consolidation measures by network carriers are having an effect on the volume of flight

movements. Lufthansa terminated the partnership with the Munich-based regional airline Augsburg Airways effective October 2013. Up to then, Augsburg Airways carried out 2,000 flights a month, around 1,300 of them with the Dash8, which is no longer used by Lufthansa.

Number of seats offered per flight increased

The average MTOM (maximum take off mass) reached a record of 78.8 tons in 2013, 2.5 tons more than in 2012. The

number of seats offered per flight increased accordingly from 138 to 144. The number of seats offered in existing hub traffic can also be increased in particular at peak times by using the largest-possible continental aircraft. However, this also shows that further growth is possible in the medium term only by means of increases in frequency.

94 airlines operated regular scheduled or charter services. That figure was 101 the year before. These figures reflect the enormous strain on air traffic. Smaller companies can no longer cope with the pressure on costs and are forced to discontinue operations or are taken over by competitors. For example, airlines who had only started offering their services at Munich Airport in 2012, such as Cimber Sterling, Cirrus Airlines, BMIbaby, XL Airways Germany or Spanair, ceased operating.

Best month - September

September 2013 was the month with the most take-offs and landings with 33,702 movements in commercial traffic. The day within the highest volumes in 2013 was likewise in September. 1,179 take-offs and landings were recorded on September 27, 2013, the Friday in the first week of the Oktoberfest.

Destinations with regular services in 2013

America _Asia Europe EU Africa Europe non-EU Germany Countries Destinations Airlines

68

238

94

24

25

18

17

118

36

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Passengers 2013 9

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Passengers 2013

10 Passengers - development 2013 12 Passengers 2013

13 Passengers 2013 per month

14 Passengers 2013 – arrival, departure and direct transit per month 15 Commercial passengers 2013 – domestic and international traffic 16 Embarkments in Munich to final destination countries 2013 17 Structure of air traffic in 2013

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Passengers 2013 10

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Passengers - development 2013

The hub as a stabilising factor

The number of passengers reached a new record, slightly surpassing the figure for the previous year. 38.7 million passengers used Munich Airport in 2013. Whereas the number of seats available was roughly the same as the year before, there was again an increase in the load factor to a record of 75.2 percent.

The new passenger record and the above-average growth compared with German commercial airports is primarily attributable to smooth hub transport operations. The ratio of transit passengers remained unchanged at 39 percent. Despite the lower number of flight movements, the number of seats and destinations offered was maintained. That secures the quality of the hub and diversity of the destinations offered to passengers from the Munich catchment area.

The load factor on flights was 75.2 percent in 2013, 0.7 percentage points higher than the previous year.

That is the best figure since the airport was opened in 1992. The number of passengers carried per flight increased by 5 to the record figure of 108 per passenger flight in

scheduled/charter services.

Most passengers – almost 3.7 million – were recorded in September. As was the case with take-offs and landings, the day with the highest passenger volumes was the Friday of the first Oktoberfest week. More than 139,000 passengers used Munich Airport on September 27, 2013.

The effects of the ticket tax and the consolidation and cost-cutting measures by network carriers particularly hit traffic within Germany at Munich Airport. Routes that used to be flown by both Lufthansa and Germanwings in competition with each other were now only served by Lufthansa. airberlin's focus on Berlin likewise meant a reduction in the domestic range of flights.

In addition, OLT's solvency right at the beginning of the year affected inner-German connections only. That resulted in a reduction in flights by 9 percent and a decline in passengers by just under 3 percent. Domestic traffic was the weakest region in terms of performance.

Munich in comparison – 7th in Europe

Compared with results for the traffic at airports represented in the German Airports Association (ADV), Munich Airport's

performance was par for the course in 2013. Whereas the number of passengers was slightly above the German average, the results for flight movements and air freight and air mail were slightly below average.

Internationally, Munich Airport ranked 7th among Europe’s airports in terms of passenger numbers. Whereas the airports of the capital cities in the crisis-hit countries Italy and Spain suffered declines (the numbers for Madrid even fell by a double-digit percentage), the volume at Istanbul’s Atatürk Airport again increased by a double-digit percentage.

Passengers per flight*

Number of seats per flight*

Seat load factor*

MTOM in tonns

Top 10 airports in Europe 2013:

35.2 35.5 36.2 38.7 39.7 51.3 52.6 58.0 62.1 72.4 BCN LGW FCO MUC MAD IST AMS FRA CDG LHR So ur ce : A irp or ts C ou nc il I nt er na tio na l

75.2%

+0.7PP

108

+5

144

+6

78.8

+2.5 Sc hed ul ed /c ha rt er flig ht s; * onl ypa ss en ge r f lig ht s

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Passengers 2013 11

Continental and intercontinental traffic – development Passenger trends in continental traffic were the foundation for the overall positive volume of passengers in 2013: 23.4 million passengers, an increase of 2.2 percent. The countries in this region exhibited higher passenger volumes than last year across the board, with Spain posting the highest growth in absolute terms. The travel boom with countries in Eastern Europe continues. Greece was also able to record far more passengers than the previous year and is well on the way to achieving the volume before the crisis. Egypt suffered a significant decline in passenger numbers, due to declining demand as a holiday destination as a result of the political unrest there. Estonia slipped well down in the passenger ranking due to the reduction in the offering to Tallinn; however, a new destination was offered in the shape of Vilnius, Lithuania. Further new destinations in Europe and countries by the Mediterranean included Bordeaux, Bristol and Casablanca. The markets with the highest volumes in 2013 were again Spain, Italy and the UK. London Heathrow was once more the international destination in greatest demand, ahead of Paris CDG. The top ten destinations in continental traffic are listed below:

In intercontinental traffic, the destinations in Africa and on the other side of the Atlantic posted growth, whereas there

was less demand for traffic with Asia than in 2012. The number of passengers in long-haul traffic increased by 1.6 percent to a total of 5.8 million.

After airberlin largely withdrew from long-haul tourism traffic last year, some of the destinations were taken over by other airlines and additional ones were offered. For example, Lufthansa flew to Cape Town and, after an interruption of four years, Condor returned to Munich effective the winter flight plan with long-haul services with destinations in Africa (Mauritius and Mombasa), Asia (Goa in India) and

destinations for beach vacations in Mexico (Cancun) and the Caribbean (Cuba, Dominican Republic and Jamaica).

Although supply and demand to and via the Gulf region rose sharply again, the overall number of passengers was just below the figure for the previous year due to discontinuation of the high-volume services to Singapore continuing on to Jakarta (Lufthansa), to Phuket in Thailand and to the Maldives (airberlin).

Routes to the U.S., the United Arab Emirates and China accounted for most intercontinental passengers. As in 2012, the intercontinental destination for which there was greatest demand was Dubai, to which there are three flights a day.

538,000 561,000 564,000 567,000 643,000 652,000 690,000 716,000 926,000 1,156,000 Rome FCO Vienna Palma de Mallorca Moskau DME Madrid Istanbul Amsterdam Barcelona Paris CDG London LHR 186,000 193,000 199,000 232,000 245,000 258,000 295,000 298,000 328,000 660,000 Shanghai PVG San Francisco Bangkok Beijing Washington IAD Doha Chicago ORD Tokyo NRT Newark Dubai

Top 10 destinations – number of passengers

Continental traffic

Intercontinental traffic

+4.8% - 7.6% +6.3% +0.4% +7.6% - 3.1% +13.4% +8.5% - 0.3% +5.3% +6.1% +5.2% - 2.5% - 4.4% +26.2% - 9.7% - 2.0% - 5.9% - 0.2% - 2,4%

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Air freight and air mail 2013 18

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Air freight and air mail 2013

19 Air freight and air mail - development 2013 20 Air freight 2013

21 Air freight 2013 per month 22 Air mail 2013

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Air freight and air mail 2013 19

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Air freight and air mail -

development 2013

More cargo aircraft in 2013

Transshipment of cargo, which denotes both air freight and air mail, was slightly below the level of the previous year in 2013. Despite positive results in the final months of the year, the result for the previous year was not able to be attained. Just under 288,000 tons of air freight and air mail were transshipped, a decline of 0.9 percent.

The most successful segment was all-cargo services, i.e. shipment on pure cargo aircraft. With a transshipment of some 35,000 tons, the proportion of all-cargo services in 2013 was around 13 percent. Cargolux, a prestigious cargo airline, was welcomed to Munich Airport in the summer of 2013. In June it commenced a weekly freight service with the routing

Atlanta-Luxembourg-Munich-Luxembourg-Viracopos (Brazil). This is the first freight service of Cargolux to a German airport. Since the end of 2012, FedEx has also been serving Memphis directly with a B777 with a high loading capacity for Munich. This cargo connection strengthened the volume for courier and express services,

with the result that more than 30,000 tons of air freight were transshipped for the first time in this segment. The result for all-cargo services was able to be increased by around 10 percent.

The volume of cargo carried on passenger flights was 235,000 tons, below the figure for 2012. It was not until the final quarter of the year that the bellyhold freight tonnage reached the level of the previous year. The bellyhold freight depends, among other things, on the loading capacity offered on passenger flights. For example, the Dreamliner B787 used by All Nippon Airways on its Tokyo route offers around a third less space for bellyhold freight than a B777.

The volume of air mail fell by 1.5 percent to just under 18,000 tons. This segment is strongly influenced by the

transportation concept of Deutsche Post and is of secondary important for the total cargo volume in terms of quantities.

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History 23

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History

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Appendix 27

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Appendix

Europe:

All European countries including Belarus, Cyprus, Moldova, Russian Federation west of Ural, Turkey and Ukraine. Denmark including Faroe Islands, Portugal including Azores and Madeira, Spain including Canary Islands, Ceuta and Melilla

Middle East:

Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, Yemen

North Africa:

Algeria, Morocco, Tunisia, Egypt, Libya

Rest of Africa:

The African continent without North Africa

North America:

Canada and USA and Greenland

Latin America & the Caribbean:

The Americas with the exeption of North America as defined above (including Puerto Rico and Virgin Islands)

Chile including Easter Islands, Ecuador including Galapagos Archipelago, Falkland Islands (british)

Asia/Pacific:

Including Afghanistan, Armenia, Azerbaijan, Georgia,

Kazakstan, Kyrgyzstan, Pakistan, Russian Federation east of Ural, Tajikistan, Turkmenistan and Uzbekistan, also Australia, New Zealand and Pacific Islands with the exeption of Hawaii, Easter Islands and Galapagos

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Published by

Munich Airport

Business Division Aviation

Market Research and Flight Planning P.O. Box 23 17 55

85326 München Germany

For further information:

Telephone: +49 89 9 75 - 2 23 01 Telefax: +49 89 9 75 - 2 23 06