Heathrow results show passengers, service, revenues all up in 2016

Heathrow

By Heathrow

Published 24th February 2017

Home > News > Heathrow results show passengers, service, revenues all up in 2016

Home > News > Heathrow results show passengers, service,…

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.

During 2016, new direct services to Jakarta (Indonesia Garuda), San Jose, Santiago and Inverness (British Airways) also opened up new opportunities for UK businesses.

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.”

The numbers…

At or for year ended 31 December 2016  2015 Change (%)
(£m unless otherwise stated)
Revenue 2,807 2,765 1.5
Adjusted EBITDA(1) 1,682 1,605 4.8
Cash generated from operations 1,652 1,592 3.8
Cash flow after investment and interest(2) 387 361 7.2
Pre-tax profit(3) 267 223 19.7
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
Passengers (m)(5) 75.7 75.0 1.0
Retail revenue per passenger (£)(5) 8.09 7.58 6.7

 

Heathrow

By Heathrow

Published 24th February 2017