Heathrow’s financial results released today show that passenger numbers, service levels, revenues and cargo levels all increased in 2016 – all while passenger charges fell by 1.0%.
The strong financial performance underpins Heathrow’s expansion plans with revenue of £2,807 million (+1.5%) and Adjusted EBITDA of £1,682 million (+4.8%) reflecting continued cost control and strong retail income growth.
Significantly, the airport was able to grow while delivering even better value to a record 75.7 million passengers (+1.0%), with passenger charges reducing by 1.0%. This has been further boosted by the introduction of Heathrow’s departing domestic passenger charge discount of £10 as of 1 January this year.
Heathrow’s world-class facilities and services were recognised with three Skytrax awards, including the Best Airport in Western Europe.
New routes, new markets and increased cargo… looking ahead
Heathrow – the UK’s busiest port by value – continues to deliver for the UK economy with a 3.0% increase in cargo volumes helping to promote British trade growth. This was also complimented by Heathrow’s £674 million investment in the airport helping to support British jobs.
Looking to the future, Heathrow expansion moved into the delivery phase as the Government announced its support for a third runway and launched a 4-month public consultation on its draft National Policy Statement.
A more resilient UK economy boosted passenger volumes at the end of 2016, with the trend continuing into the early weeks of 2017.
“2016 was a milestone year for Heathrow”
Heathrow CEO John Holland-Kaye said he was “proud” of the airport’s results.
2016 was a milestone year for Heathrow. I am very proud of what our 76,000 colleagues have achieved. We gave better service at lower cost to a record number of passengers and helped British businesses across the country trade more with the rest of the world.
– Heathrow CEO, John Holland-Kaye
“We have started the planning process for expansion and are preparing the skills and the supply chain we will need to build it sustainably and affordably. Heathrow is delivering for Britain. We have started the planning process for expansion and are preparing the skills and the supply chain we will need to build it sustainably and affordably. Heathrow is delivering for Britain.”
|At or for year ended 31 December||2016||2015||Change (%)|
|(£m unless otherwise stated)|
|Cash generated from operations||1,652||1,592||3.8|
|Cash flow after investment and interest(2)||387||361||7.2|
|Heathrow (SP) Limited consolidated net debt(4)||11,908||11,745||1.4|
|Heathrow Finance plc consolidated net debt(4)||13,005||12,670||2.6|
|Regulatory Asset Base||15,237||14,921||2.1|
|Retail revenue per passenger (£)(5)||8.09||7.58||6.7|