Heathrow reveals it hasn't given up on expansion as it returns to profit
Gary NoakesHeathrow has not given up on plans for a third runway, it has confirmed in its latest financial report.
Airport chiefs said it was examining a new case for expansion following the pandemic. “We are conducting an internal review of the work we have carried out and the different circumstances we find the aviation industry in, and this will enable us to progress with appropriate recommendations and ways forward,” it said.
It added it still had government support for plans for a third runway “and the related infrastructure required to support an expanded airport”.
In the last calendar year, Heathrow recorded its first profit since 2019, making £38 million before tax. The airport did this after being made to cut fees to airlines by 20% in line with a CAA judgment.
Passenger numbers reached 79.2 million, the third-highest in the airport’s history and an increase of 17.6 million on 2023. Revenue increased by almost 27% to £3.7 billion.
Aircraft were on average 79.6% full compared to 77% in the previous year due to the increase in the number of flights being slightly behind the increase in passengers. The percentage of business travellers rose one point to 27% but lags the 32% reached in 2019.
Heathrow plans to cater for a record 81.4 million passengers this year.
Heathrow chief executive Thomas Woldbye said: “2023 was a good year for Heathrow from a challenging start to a great finish.
“We delivered much improved service for our customers and managed to turn a small profit after three consecutive years of losses.
“That’s a great platform to build on, although in 2024, we are expected to deliver even further improved service to more passengers, but with airport charges cut by 20% in real terms.”
The report said a “refreshed” business strategy would be shared in the months ahead.
“We will have to pull every lever to become more efficient and make tough choices on where we spend and invest our money to overcome the huge cost challenge set by the CAA and remain profitable over the next three years.”
Heathrow said it would incentivise the use of up to 155,000 tonnes of sustainable aviation fuel (SAF) this year and urged the government to use the Spring Budget on 8 March to back SAF production.
“UK consumers will pay more to travel in the future if ministers do not speed up the delivery of a domestic SAF industry,” it said.
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