UK. London Heathrow Airport today reported results for the six months to 30 June, with retail revenues climbing by +2.2% year-on-year to £373 million (US$497 million). The growth outstripped the +0.2% rise in passenger traffic to 40 million in the half. (See below for video commentary from CFO Sally Ding via LinkedIn.)
A Heathrow statement said the retail revenue increase was supported “by continued demand for premium services, increased food & beverage sales with new outlets and a boost in bookshop revenues.”
It added, “Recent softness in passenger numbers since the conflict in the Middle East started resulted in a flat performance in duty free and decline in luxury spending with bureaux de change also falling consistent with global trends.”
Overall revenue grew by +0.3% to £1,729 million (US$2,304 million), while Adjusted EBITDA fell by -4.6% to £915 million (US$1,220 million) and Adjusted pre-tax profits slipped -5% to £115 million (US$153 million).
Heathrow CEO Thomas Woldbye said: “Despite geopolitical headwinds, we welcomed a record 40 million passengers in the first half of the year while delivering strong customer service, culminating in passengers ranking Heathrow as one of the best airports in the world. I’m proud of the work colleagues have done to achieve this in the face of these challenges.
“Our plan for the future is about much more than just building a third runway – this project is a real opportunity to provide an economic boost to every region and nation of the country. It will back British industry by pumping billions of pounds of private investment into our UK supply chain, revitalising the UK’s steel sector as well as creating tens of thousands of new jobs and skilled apprenticeships across the country.
“It will unlock significant new capacity, opening new domestic and international routes, making travel more affordable for passengers and providing a £150 billion boost to British trade with markets around the world.
“For too long, indecision and debate has prevented these benefits from being delivered. Over the next several weeks, we’ll be working with the new Government to make sure we can deliver these benefits for communities and workers right across the country.” ✈
