Heathrow 2015 financial results released with revenue and passenger satisfaction up

Heathrow

By Heathrow

Published 23rd February 2016

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Heathrow has today released its 2015 full year financial results including revenue of £2,765 million and record passenger satisfaction levels.

Headlines:

  • Heathrow achieves highest passenger service scores ever, making it Europe’s best hub airport;

  • 75 million passengers, a new record and an increase of 2.2% on 2014;

  • Heathrow the only airport in the world to sign the Paris Pledge for Action on climate change;

The financial numbers in short: Revenue up 2.2%, EBITDA up 3%

Heathrow’s revenue (£2,765m) increased by 2.2% in 2015 while EBITDA (Earnings Before Interests, Taxes, Depreciation and Amortization) rose 3% to over £1.6bn.

The strong financial results came on the back of record passenger numbers, good retail income growth and strong underlying cost control. Heathrow lowered costs in the second half of the year and benefited as a result.

Over the course of 2015, Heathrow has secured cost efficiencies expected to be worth £170 million over the 2014-2018 regulatory period, taking the total secured to over £450 million, out of a target of £600 million.

We have further developed our income streams and secured over £150 million in additional commercial revenue out of a target of £270 million.

2015 Overview

2015 was a very good year for Heathrow as we made excellent progress towards our aim of giving passengers the best airport service in the world. Passengers ranked the quality of service at Heathrow the highest of Europe’s hub airports and Heathrow was named the Best Airport in Western Europe by Skytrax.

Overall in 2015 we welcomed a record 75.0 million passengers and on five separate days over a quarter of a million passengers used Heathrow!

We delivered record passenger satisfaction and operational reliability improved even with our busiest days ever. Overall in 2015 we welcomed a record 75.0 million passengers and on five separate days over a quarter of a million passengers used Heathrow!

Passengers had even greater choice in 2015, with new airlines, new destinations and more seats available per flight. We welcomed Vietnam Airlines moving its London services to Ho Chi Minh and Hanoi from Gatwick to benefit from the transfer traffic and cargo at Heathrow. British Airways started a new service to Kuala Lumpur and in March 2016, Garuda Airlines will also move its London flights from Gatwick, bringing Jakarta as a new destination from Heathrow.

Our focus on transforming customer service has covered all aspects of the airport. Passengers are enjoying faster journeys through the airport, with reducing queue times due to more security lanes and parallel loading, improved body scanners and new biometric passport gates in immigration. Our new baggage facility in Terminal 3 helps reduce connection times.

We have also been making our operations more efficient and robust. We have introduced technology and procedures to improve our resilience, including enhanced Instrument Landing Systems, which assist in low visibility, and time-based separation of arriving aircraft to facilitate more landings on windy days.

These measures allow a more punctual and complete schedule to be operated, disrupting fewer passenger journeys. Passengers now have unrivalled choice from our award winning retail offering with expanded World Duty Free outlets and new stores including Chanel, Louis Vuitton and Hermes. We also opened a new business car park and independent lounges in Terminals 4 and 5.

Heathrow wins Eco-Innovation Award

We have made significant progress in 2015 in our commitment to supporting the UK and local economies whilst managing our impacts on communities and the environment.

We were awarded the Eco-Innovation Award by ACI Europe, commending Heathrow for the progress made in reducing emissions from the airport. We are the only airport in the world to sign the Paris Pledge for Action on climate change.

We are leading the way in the airport community by cutting emissions from our own fleet and installing electric vehicle infrastructure. We are also collaborating with airlines, air traffic control and other partners to be quieter, sooner. In 2015, over 99% of flights were operated by the quietest category of aircraft.

Heathrow expansion: Up to £211bn economic benefits and 180,000 UK jobs

Demand to use Heathrow continues to massively outstrip the capacity available with two runways and in July, the Airports Commission gave a unanimous and unambiguous recommendation for Heathrow’s proposal to expand with a third runway to the north west of the existing airport.

The Commission confirmed that expanding Heathrow would have the greatest economic benefit for the UK and can be delivered while reducing noise for local communities and within EU air quality limits.

The Government is now undertaking further analysis on environmental impacts, which is expected to conclude during the summer of 2016. The economic benefit to the UK of expanding Heathrow is up to £211 billion, creating 180,000 jobs nationally, 40,000 new jobs locally and doubling the number of apprenticeships to 10,000.

In December, the UK Government agreed that there is a need for more runway capacity in the south east of England, validating the findings of the Airports Commission. The Government is now undertaking further analysis on environmental impacts, which is expected to conclude during the summer of 2016. The economic benefit to the UK of expanding Heathrow is up to £211 billion, creating 180,000 jobs nationally, 40,000 new jobs locally and doubling the number of apprenticeships to 10,000.

Heathrow has huge support both locally and nationally from business, trade unions, politicians, airlines and the UK construction industry and is ready to deliver.

We have full confidence that expansion can be delivered within tough environmental limits and we will work with the Government to deliver the hub capacity that Britain needs.

Heathrow CEO John Holland-Kaye’s response to the results

John Holland-Kaye, Chief Executive Officer of Heathrow, welcomed the results and said the airport is ready to deliver on a bigger and better Heathrow for the UK with expansion.

“It’s been an excellent year for Heathrow. As we approach our 70th anniversary, our colleagues are delivering the best service we’ve ever achieved to a record number of passengers,” Holland-Kaye said.

“We’re also making strong progress on our environmental commitments by reducing emissions and noise, and another set of robust financial results underpins our plans to make Heathrow the most sustainable hub airport and the UK the best connected country in the world.

I’m confident that this summer the Government will agree with its Airports Commission that expanding Heathrow is the only way to secure Britain’s long-term economic future and meet environmental demands. We stand ready to deliver.”

Heathrow has today also commented on the European Union referendum. To see our statement, click here.

Heathrow

By Heathrow

Published 23rd February 2016