UK. London Heathrow Airport today revealed full-year results for 2022, with retail revenue climbing by almost +160% from a low 2021 base to £564 million.
This was driven by higher numbers of departing passengers, car parking revenue, terminal drop off, premium services and the mix of retail services available in 2022, compared to 2021 when government restrictions on non-essential shops were in place for the first five months of the year. Retail revenue per passenger decreased by -18.1% to £9.16.
Total revenue increased by +140% to £2,913 million. In Q4, the figure rose by +55.5%.
Revenue continues to be strongly driven by passenger traffic growth. In 2022, Heathrow welcomed 61.6 million passengers, an increase of +217.6% compared to the prior year, and 76% of pre-pandemic levels. This was the highest passenger increase of any major airport globally, said Heathrow.
Passenger numbers in December were close to 5.8 million, which was just -11% below 2019 levels, the highest since the start of the pandemic.
Heathrow said: “Demand continues to be driven by outbound leisure, although inbound leisure and business travel are showing good signs of recovery. During the fourth quarter, business travel reached 28% of overall traffic, compared to 32% in the same period pre-pandemic.”
Net losses reduced from £1,270 million to £684 million in the year, but the company noted that “inflation, lower passenger numbers and insufficient regulated charges impacted underlying profitability”.
The airport company noted that service is returning to normal – with over 25,000 people having started work at Heathrow in the last 18 months, resource levels are now close to pre-pandemic levels, it said. “In 2019, passengers ranked Heathrow as one of the top ten in the world and we are determined to get back there.”
Heathrow CEO John Holland-Kaye said: “2022 may have been a year of recovery, but 2023 is shaping up to be a year of renewal for Heathrow. Our teams have already delivered a successful Christmas and half-term getaway, and with a great investment plan in place, we are determined to once again rank in the top ten airports for service.
“I couldn’t be prouder of how far Team Heathrow has come in my nine years as CEO – from transforming customer service, to securing Parliamentary approval for expansion to surviving two years of border closures and rebuilding the business. My successor will take on a fantastic team who are making Heathrow a world leading hub that Britain can be proud of.”
As reported in December, Heathrow Airport is forecasting a +7.2% rise in retail revenues year-on-year in 2023 alongside a +9% increase in passenger traffic.
The forecast is based on a continuation of the recovery seen in H2 2022 but with some softening due to the weaker economic climate. 2023 is expected to see a return to a “more typical pre-Covid travel profile” across the year, said the airport company. ✈
