Heathrow Airport: Strong start to 2018 1

Heathrow Airport: Strong start to 2018

Passengers and trade flowing through Heathrow soared to record highs, as Heathrow climbed the global airport rankings coming in as the seventh best airport in the world and retaining the top spot in Western Europe for the fourth year running at the annual Skytrax Awards.

Better service at lower cost – Passenger satisfaction with Heathrow is at its highest level, supported in Q1 by Heathrow’s investments in winter resilience which kept the UK’s hub open during one of the worst winters in recent years while delivering lower operating costs per passenger.

Robust financial health – Lower operating costs per passenger and higher retail spending resulted in strong revenue growth of 3.8% to £680 million and increased Adjusted EBITDA by 5.2% to £402 million. Underpinned by a successful financing strategy that raised over £350 million in global markets.

Phasing out single-use plastics – Heathrow is aiming to lead the aviation industry in cutting single-use plastics, the first step of which is Heathrow’s plan to recycle up to 13.5 million of the single-use coffee cups used at the airport annually.

Milestone moment for expansion – As Heathrow begins to design its preferred expansion masterplan, the airport called for the public to submit innovative ideas on how to further improve the project. The move follows the backing of the northwest runway by the Transport Select Committee and thousands of people participating in Heathrow’s first planning consultation. Parliament is expected to vote on expanding Heathrow this summer, with the latest polling showing 75% of MPs back the project.

John Holland-Kaye, Chief Executive Officer of Heathrow, said:

“We’re delighted that passengers are choosing Heathrow in record numbers – it’s is a strong signal that we’re delivering value for money. We’re within touching distance of Parliament voting on expanding Heathrow and now more than ever we’re committed to developing and delivering a hub airport that Britain can be proud of for generations to come.”

At or for three months ended 31 March 2017 2018 Change (%)
(£m unless otherwise stated)

Revenue 655 680 3.8
Adjusted EBITDA 382 402 5.2
EBITDA 416 403 (3.1)
Cash generated from operations 394 405 2.8
Cash flow after investment and interest 38 63 65.8
Pre-tax profit 27 33 22.2

Heathrow (SP) Limited consolidated net debt 12,372 12,409 0.3
Heathrow Finance plc consolidated net debt 13,674 13,693 0.1
Regulatory Asset Base 15,786 15,773 -0.1

Passengers (million) 17.2 17.7 3.1
Retail revenue per passenger (£) 8.62 8.82 2.3

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