UK. Retail revenue was the star of the show as Gatwick Airport turned in a strong first-half financial performance.
Retail revenue rose +25.1% year-on-year to £112.2 million (US$146.9 million), far outstripping the +7.7% passenger growth. The sector now represents 23% of total revenue, up from 21% a year earlier.
Net income per passenger increased by a healthy +16.1% to £5.52 (US$7.23). Total airport revenue was up +15.3% to £487.9 million (US$639 million). EBITDA climbed +13.9% to £268 million (US$351 million) while net profit surged +33.8% to £106 million (US$138.8 million).
Within retail income, duty- and tax-free experienced the highest growth through a combination of passenger mix (helped by greater numbers of
passengers from China and India), a strong performance from the beauty sub-category and new contract terms (an element of which was back-dated).
However, net retail income per passenger for specialist shops was flat year-on-year, reflecting that this sector is typically a more discretionary spend and a challenging cost of living backdrop, Gatwick Airport noted.
Food & beverage saw strong growth (nearly +14%) with several more outlets open in this period compared to last year. The airport introduced Pizza Express, Big Smoke and Black Sheep Coffee while various other units enjoyed refits. TAG Heuer and Tudor watch boutiques were also opened.
The refurbishment of the North Terminal international departures lounge was completed during H1. This, together with additional new operators across both terminals, helped to enhance the passenger experience and positively impact retail revenue, the company said.
A £1.4 million (US$1.83 million) programme to replace a range of media screens with modern, higher specification models was also completed, aimed at driving advertising income as well as boosting the appearance of terminal spaces.
The company said its focus on developing new long-haul routes across the Middle East, Asia and North America is attracting a wider range of passengers and continues to build on a vision to be the airport for everyone. Recent new services include the June introduction of Singapore Airlines flights plus new routes by flag carriers to key cities across China and India.
London Gatwick Chief Executive Officer Stewart Wingate said: “With the growing demand for travel, we are experiencing one of our busiest summers yet. Thanks to robust planning and close collaboration with our partners we’ve had a strong start to 2024, ensuring a reliable and enjoyable experience for our passengers.
“I am delighted that we have once again achieved good service levels, as evidenced by meeting 100% of our service measures. At the same time, through our Northern Runway Project, we are demonstrating our commitment to growing sustainably, in line with our Decade of Change sustainability strategy and government policy.
“Our teams have worked incredibly hard to achieve these results. As we continue to grow our network and offer more choice for passengers, we are working towards our vision to be the airport for everyone, whatever your journey.” ✈
