Greater Manchester councils have received £318m from Manchester Airports Group (MAG) between March 2023 and September 2026, a figure equivalent to £91m a year, despite dividend payments on profits remaining suspended since the Covid-19 pandemic.
The payments come as some councillors and town hall bosses across the region renew calls for major dividend payments to resume, with finance chiefs at Stockport council grappling with rising social care costs.
Ownership and dividend history
MAG is 64.5 per cent owned by the 10 Greater Manchester authorities, with Manchester City Council the biggest investor at 34.5 per cent. The city council’s leader sits as a director, and the region’s nine other councils hold 29 per cent of shares between them. The airport group is privately managed despite the local authorities owning a majority of shares, with 30 per cent of shares held by IFM Investors.
As a result of council investment in the airport group in 1986, Greater Manchester councils have received dividends in the past on profits made. These payments helped fund key council services, with the last major dividend over £110m.
Payments stopped during the Covid-19 pandemic when passenger numbers plunged and two terminals closed as lockdown measures were introduced. To keep the airport afloat, councils provided a finance package of more than £250m.
Calls for dividend return
Councillors since the pandemic have called on the airport to start paying dividends, with one council leader saying ‘it would be good if we saw that support returned to us’.
At a Stockport council meeting this week, councillor Jilly Julian, deputy leader overseeing the council’s finances, said: “I am thrilled for Manchester Airport Group their revenues are higher than they’ve ever been, that their passenger numbers are higher than they’ve ever been and they’re constantly bringing on new routes and new airlines that are clearly going to do very well for them in terms of aviation fees.”
She added: “I would dearly love it if there was a significant dividend payment back to local councils and I would dearly love it if, given the airport’s clear success since their own transformation programme, that that would be sooner rather than later.”
A spokesperson for Manchester council, whose leader Coun Garry Bridges sits as an MAG director, took a different view, telling the Manchester Evening News: “Manchester Airport plays a crucial role in a thriving city, both as an international gateway and through the many thousands of jobs it creates and supports.”
“While we would welcome the dividend returning when it is sustainable, we remain in dialogue with Manchester Airports Group as to when this is and our overriding priority remains the ongoing and long-term success of the airport and the wide range of benefits this brings.”
Payments and investment
While dividends on profits have been suspended, councils have been receiving regular payments from the airport in terms of loans and investment both in response to the pandemic and in the Drop & Go car parks. Manchester council, as the biggest investor, received over £165m in that time, while all other nine councils in Greater Manchester received around £17m.
In March 2027, an investors report said shareholders are also expected to be paid £112.9m of interest on their loans. However, the prospect of any return of dividends on profits seems a long way off. At a recent Bolton council audit committee meeting, treasury boss Graeme Wilson suggested they are not likely to be seen ‘before the end of the decade’.
While MAG saw losses in 2022, it has made an operating profit every year since, with figures rising to £303m in 2026, an increase of 15.5 per cent on the year before. However, this does not take into account ‘high levels of investment’ in MAG’s airports, with over £560m in the last year which comes at a cost.
While Manchester Airport’s £1.5bn transformation is now finished, £1.1bn is being invested at Stansted to increase capacity there. The firm’s annual report for 2026 shows finance costs for this investment were around £242m and £27.5m was paid in tax.
MAG also say they are facing ‘headwinds of rising costs, notably employee-related costs’ while conflict in the Middle East has affected passenger numbers. In 2029, the Manchester Evening News understands MAG’s business rates bill is set to increase from £34m to around £73m by 2029, an increase of 112 per cent, and the airport group has said they’ve paused £130m of investment as a result.
A MAG spokesperson said: “Following the Covid-19 pandemic, MAG agreed a long-term dividend strategy with its Board and shareholder representatives. This strategy has enabled the Group to continue investing record sums in critical airport infrastructure, including the £1.5bn transformation of Manchester Airport.”
“These investments have supported the airport’s continued growth, helping attract new routes, create jobs, and drive trade, tourism and investment across Greater Manchester. They have also enabled us to deliver industry-leading sustainability, education and skills programmes that support local people, including those not in education, employment or training, while continuing our investment in community projects and local causes.”
“Our shareholders understand and support these investments, recognising the long-term benefits they deliver. We have a strong and longstanding relationship with all our shareholders and remain committed to maintaining open, direct and regular dialogue with them. We will continue to engage constructively regarding future distributions and the long-term success of the business.”
