UK. London Heathrow Airport has reported a +7.7% year-on-year increase in retail revenue in the first six months of 2016 to £280 million. Retail revenue per passenger rose +7.1% to £7.84.
Of this, duty and tax free shops contributed £62 million, a +3.3% increase.
Total revenue at the airport increased by +1.0% to £1,320 million while adjusted EBITDA was up +4.4% to £781 million, which the airport said reflected “lower costs and better value”.
Heathrow reported a +0.6% growth in passengers to 35.7 million in the first six months of the year. Underlying traffic increased in the early part of the year but softened in the second quarter reflecting a more uncertain macro-economic environment, the airport said.
Long haul traffic increased +1.4%, largely from routes serving the Middle East and Asia Pacific.
The airport also provided an update on the retail refreshment programme in Terminal 4. The Drake & Morgan group will open ‘The Commission’, its first airport unit, “shortly”. Terminal 4’s luxury stores, such as Harrods, Burberry and Cartier, are also being re-developed. Five new luxury brands will be introduced, two of which will be new to Heathrow, it said.
Heathrow noted that it received a record Airport Service Quality score of 4.16 from Airports Council International (ACI). It also won ACI Europe’s ‘Best Major Airport’ award for the third time.
The airport said that the result of the EU referendum in the UK had “raised uncertainties around the macro-economic outlook but Heathrow had begun to plan for a more challenging environment prior to the referendum. Heathrow’s financial performance has proven resilient in previous periods of macro-economic instability so, whilst the coming months may present challenges, Heathrow does not currently expect its 2016 Adjusted EBITDA performance to be materially impacted.”
Chief Executive Officer John Holland-Kaye said: “Now Britain needs a positive post-Brexit plan and only Heathrow expansion will help Britain to be one of the world’s leading trading nations – connecting all of Britain to global growth. Heathrow has a new plan for expansion, allowing the Prime Minister to make the right choice in the national interest.”
