Wednesday, February 21, 2024
Heathrow soared to new heights in 2023, marking a remarkable year with its passenger count reaching 79.2 million, making it the airport’s third-busiest year. It led the charge among European hubs, earning the accolade of Europe’s best airport, and was recognized as the world’s most connected airport, breaking into the top five largest airports globally. This success is attributed to the collective effort of Team Heathrow, laying a solid groundwork for 2024 with the aim of setting a new record of welcoming 81.4 million passengers, more than ever before.
For the first time since 2019, Heathrow reported a modest adjusted profit, thanks to a strong performance in the last quarter, recording a £38 million adjusted profit before tax. The airport’s financial health is robust, with gearing below pre-COVID-19 levels and £3.8 billion in liquidity. Despite a 20% real-term reduction in airport charges as per the CAA’s H7 settlement at the beginning of 2024, the airport faces the challenge of bridging a £400 million gap through efficiencies and investment compromises over the next three years. A revised business strategy is in the works, to be unveiled soon. No dividends were paid in 2023, and none are projected for 2024, though this may change depending on financial results.
Heathrow is also investing in enhancing service quality and resilience, with a £1 billion investment earmarked for upgrading 146 security lanes with next-gen security equipment and overhauling the T2 baggage system.
Sustainability is a core focus for Heathrow, which made significant progress toward its Heathrow 2.0 sustainability goals. Initiatives included the Giving Back Programme, benefiting nearly 100,000 locals, record usage of Sustainable Aviation Fuel (SAF), including the first 100% SAF-powered transatlantic flight, and a pledge to encourage the use of up to 155,000 tonnes of SAF in 2024.
The upcoming Spring Budget presents an opportunity for Ministers to bolster the UK’s stance in global tourism and accelerate the development of a domestic SAF industry, ensuring competitive travel costs for UK consumers and enhancing the attractiveness of the UK as a destination for international tourists by reintroducing tax-free shopping and leveling the playing field with European counterparts.
Heathrow CEO 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. 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.”
| At year ended 31 December | 2023 | 2022 | Change (%) |
| (£m unless otherwise stated) | |||
| Revenue | 3,687 | 2,913 | 26.6 |
| Adjusted EBITDA(1) (4) | 2,228 | 1,684 | 32.3 |
| Cash generated from operations | 2,092 | 1,719 | 21.7 |
| Profit before tax | 701 | 169 | 314.8 |
| Adjusted profit/(loss) before tax(2) (4) | 38 | (684) | 105.6 |
| Heathrow (SP) Limited consolidated nominal net debt(3) (4) | 14,795 | 14,579 | 1.5 |
| Heathrow Finance plc consolidated nominal net debt(3) (4) | 16,806 | 15,786 | 6.5 |
| Regulatory Asset Base(5)(4) | 19,804 | 19,182 | 3.2 |
| Passengers (million)(6) | 79.2 | 61.6 | 28. |
Sunday, April 28, 2024
Sunday, April 28, 2024
Sunday, April 28, 2024
