UK. London Heathrow Airport today posted first-quarter results with retail income climbing +12.8% year-on-year to £168 million (US$209 million). The performance outstripped passenger growth of +9.5% to 18.5 million.
Retail growth was driven by higher numbers of departing passengers and a strong car parking performance, said the airport company.
Passenger demand was buoyed in part by growth on key business routes like Delhi and Mumbai, strong North American traffic and surging East Asian demand (+40% versus Q1 2023). Reflecting the strong performance to date, Heathrow has lifted its passenger outlook to 82.4 million in the full year.
Total revenue in the quarter slipped marginally (-0.7%) year-on-year to £808 million (US$1,005 million) with higher regulatory charges introduced by the Civil Aviation Authority having an impact on aeronautical income. Operating costs, led by employment and training also rose by double digits in the period.
Adjusted EBITDA fell by -8.8% to £443 million (US$551 million) while adjusted pre-tax profit reached £83 million (US$103 million), compared to a £139 million loss in Q1 last year.
Heathrow also commented on its passenger satisfaction ratings. In the first three months of 2024, overall passenger satisfaction achieved the highest score since Q1 2022.
Many categories demonstrated an improvement compared to Q1 2023, including ‘Wi-Fi Service Quality’, ‘Availability of Water Filling Stations’, ‘Ease of Making Connections with other Flights’, Waiting Time at ‘Security’ and ‘Check-in’. In contrast, Heathrow noted, others including ‘Restaurant/Bars/Cafes’, ‘Shops’, and ‘Signage to Access to the Terminal’ saw a decrease.
Under its vision to be ‘an extraordinary airport’ and ‘fit for the future’, Heathrow said it is focused on enabling a more efficient operation that supports more passengers while delivering on its Heathrow 2.0 sustainability commitments.
To support the updated strategy, Heathrow has streamlined roles and accountabilities across the executive team. Javier Echave will become Chief Operating Officer on 26 April, and Ross Baker (until now Chief Commercial Officer) will become Chief Customer Officer on 1 May. Chief Strategy Officer Chris Annetts will leave the company at the end of April.
Heathrow also highlighted once more the weakness of government support for UK competitiveness through aviation.
The company said: “Ministers should rethink anti-growth policies like the ‘tourist tax’ that discourage international visitors from spending in the UK; and unnecessary travel visas for transiting passengers that risk the UK’s global connectivity and Heathrow’s hub status. A supportive policy environment for aviation would deliver a much-needed economic boost by encouraging people to visit, spend and do business here in the UK.” ✈
