Teesside Airport Finally “In Profit” – But Only If You Read the Small Print
- teessidetoday
- 3 hours ago
- 3 min read
After Years of Losses, Teesside Airport Is Back in the Black.... But at what cost ?
23rd December 2025
Teesside International Airport has today, for the first time in several years, reported a headline profit in its latest annual accounts. But a close reading of the financial statements shows that while the airport’s position has improved, the claim that it is now “in profit” depends very much on how that profit is defined, with the accounts for Teesside International Airport Limited, which the Teesside & Durham Post has seen covering the year ended 31 March 2025, reveal a significant turnaround compared with the previous year
The headline figures
According to the income statement Turnover for Teesside International Airport Ltd increased to £16.96 million, up from £14.77 million the year before. The airport also recorded an operating profit of £6.73 million, compared with an operating loss the previous year of £4.97 million in 2024. After interest and taxation, the airport reported a profit for the year of £1.78 million, compared with a loss of £6.63 million in the previous year.
On the face of it, its a dramatic improvement and allows the airport to state that it has moved into profit for the first time since coming back into public ownership.
What's driving the “profit”?
The key issue is how that profit has been achieved. The accounts show that the operating result is heavily influenced by other operating income and fair value movements, rather than purely by aviation activity such as passenger numbers, landing fees, or commercial retail performance. In particular its been reported that the airport benefited from revaluation gains on investment property, which are accounting adjustments rather than additional cash income. There also reportedly remains a substantial cost base associated with running the airport, including staffing, security, maintenance, and depreciation, this means that while the airport is technically profitable on paper, the underlying cash-generating performance of the airport remains much weaker than the headline profit suggests.
Balance sheet position: still fragile
The statement of financial position highlights ongoing issues, with the airport shouldered with net liabilities of £19.94 million, with Accumulated losses remaining substantial, despite this year’s reported profit, and the business said to be continuing to rely on shareholder support and capital injections.
In simple terms, & despite the positive tone put on it by the Tees valley Mayor Ben Houchen in a social media statement put out today, the reality is one profitable year does not erase years of losses, with the airport’s balance sheet still heavily dependent on public-sector backing.
The directors’ strategic report is however 'optimistic', pointing to increased growth in passenger routes, as well as the expansion of cargo and logistics activity & Non-aviation income brought in from property and development land, However, the accounts also confirm that the going concern assumption depends on continued financial support. Without that backing, the airport would struggle to meet its obligations in the short to medium term.
The bottom line for taxpayers...
So, has Teesside Airport “made a profit”?
Technically, yes.
Substantively, not yet.
The airport has achieved an accounting profit, but it hasn't demonstrated that it can operate sustainably without ongoing public support. Much of the improvement is driven by accounting adjustments and one-off factors rather than robust commercial self-sufficiency.
For local residents and taxpayers, the questions not whether the airport can post a profit in one financial year, but whether it can continue to generate consistent operating cash surpluses, Reduce its accumulated losses & Ultimately stand on its own without repeated financial intervention...
At present, the accounts suggest progress — but not independence from Taxpayer funds.
