UK. London Heathrow Airport has reported a +24.5% year-on-year leap in retail revenue to £514 million (US$623 million) for the first nine months of 2023. The figures were buoyed by a +34.4% rise in passenger traffic to 59.4 million in the period.
However, retail revenue per passenger decreased by -7.4% to £8.65 (US$10.49), mainly because of the removal of VAT-free shopping and the ‘normalisation’ of car parking revenue. Compared to 2022, the airport company said, there is now greater travel choice and price competition. This includes the Elizabeth Line and an increase in third-party car parking operators.
In the nine months ended 30 September, total revenue increased by +30.1% to £2,739 million (US$3,322 million). Adjusted EBITDA increased to £1,701 million (US$2.063. million) from £1,252 million in 2022. The group recorded a £460 million (US$558 million)) profit after tax, compared to £463 million a year earlier.
Following a strong Summer, Heathrow revised its 2023 traffic forecast to 79.3 million passengers. The company expects 2024 traffic to be in line with 2019. Adjusted EBITDA for 2023 is expected to be around £2.2 billion.
Heathrow also noted that it has reclaimed its status as the world’s most internationally connected airport, according to OAG.
Heathrow CEO Thomas Woldbye, who recently took over the role from John Holland-Kaye, said: “Heathrow is already a great national asset for Britain and our best days still lie ahead. We’ve got a clear plan to connect all of Britain to global growth, a flight path to net zero by 2050, and while we have a tight settlement from the CAA, we will upgrade the airport for our customers. I’m excited to take on the challenge and looking forward to working with Team Heathrow to build an even stronger hub for Britain in the next decade.” ✈
