Heathrow reports 8 2 rise in revenue

Heathrow officials are expecting a boost in passenger numbers following rising revenues.

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By :  ,  Financial Analyst

Heathrow Airport Holdings has reported a boost in revenues for the nine months to September.

In its latest trading update the company, which owns Heathrow Airport, stated for the year to September 30th, revenue had grown by 8.2 per cent to £1.9 billion while earnings before interest, taxes, depreciation and amortisation (EBITA) was also up 12.4 per cent to £1.17 billion. On the back of these figures officials are now expecting passenger numbers to grow at a faster rate.

Heathrow has enjoyed three quarters of record passenger satisfaction while there was a boost in overall numbers which stood at 55.7 million for the period. The company noted that this had been driven by a 1.5 per cent boost in intercontinental traffic. It highlights that Heathrow remains a popular airport for both British and overseas travellers as well as those transferring to other destinations.

Earlier in the month, Heathrow was forced to sell off Aberdeen, Glasgow and Southampton airports. The sales, which totalled £1 billion, came after an inquiry from Competition Commission ordered the company, previously known as BAA, to be broken up. This resulted in seven airports being put on the market leaving Heathrow with just its flagship London hub.

Despite this move, Heathrow has performed well. It has successfully integrated the new £2.5 billion Terminal 2: The Queen's Terminal which included a transition of 26 airlines to the site. It has also gained support for an expansion to help increase the UK's hub capacity crisis, as highlighted in the Airports Commission.

John Holland-Kaye, chief executive officer of Heathrow, said: “Heathrow continues to deliver against key targets, with more passengers than ever choosing to use Heathrow and record passenger satisfaction numbers at the UK’s only hub airport."

"With the Airports Commission launching its national consultation on airport capacity expansion imminently, Heathrow expansion is increasingly being seen as the best option to keep Britain at the heart of the global economy."

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