LHR Airports Ltd.

07/24/2024 | Press release | Distributed by Public on 07/24/2024 00:11

Heathrow welcomes record 39.8 million passengers - results for the six months ended 30 June 2024

24 July, 2024

Heathrow welcomes record 39.8 million passengers - results for the six months ended 30 June 2024

Need to back UK aviation to ensure global competitiveness - While Heathrow continues to attract new routes and record passenger numbers, competitive drags hang over the airport with bureaucratic tax and border policies pushing passengers to rival European hubs. We encourage the new Government to back aviation by taking a coordinated approach to policy making that supports the sector's long-term competitiveness. Making Heathrow the European hub airport of choice to travel, shop and transfer through is vital to deliver growth for the whole of the UK economy.

Record-breaking number of passengers choosing Heathrow - We have welcomed 39.8 million passengers in an exceptional start to the year. June 30th was our busiest day ever, with over 268,000 passengers travelling on over 1,300 flights. High load factors and larger aircraft are driving growth, with key destinations in Asia and the Middle East experiencing more than doubled demand in recent years.

Heathrow is prepared for a super summer getaway - The bumper summer is being supported by a record number of 90,000 Team Heathrow colleagues. This is driving strong operational performance, with departures punctuality improving year on year to 72.8% in the first 6 months of 2024 and over 95% passengers passing through security in less than 5 minutes.

Continued robust financial performance - Despite record passenger numbers, aeronautical revenue is down by almost 8% as a result of the CAA's tight H7 settlement. We continue to make progress on closing a £400 million shortfall from the settlement, and initiatives aimed at streamlining operations and driving efficiencies without impacting passenger experience or safety have enabled us to turn a £178 million adjusted profit before tax in H1.

Heathrow's 6 strategy beacons will enable us to become an extraordinary airport, fit for the future - The refreshed business strategy is backed by 6 beacons ranging from our shorter-term goals of creating a 'winning team' and being 'fast and focused' to our aims of a 'digital future' and 'creating capacity' and ultimately bringing the most 'value for customers.' The beacons provide a roadmap to achieving our extraordinary vision. Continued progress has been recorded for our 'people and planet' beacon with the first of multiple ultra rapid EV charging hubs rolled out airside, capable of charging operational vehicles for multiple days use in under 30 minutes.

Heathrow CEO Thomas Woldbye said:

"Serving record-breaking passenger numbers while continuing to deliver excellent customer service is no easy feat and is testament to the dedication of my hardworking colleagues. In addition to the nearly 40 million passengers that flew through Heathrow during the first 6 months, so did 765 tonnes of cargo, supporting world leading British industries to access global export markets. We are working hard to deliver economic benefits for all of the UK, but this needs to be supported by joined up policy making that prioritises global competitiveness and sustainable growth. We are encouraged by the new Government's recognition of Heathrow's role in powering growth across the country, and look forward to working with Ministers to ensure we are firing on all cylinders and retain our global standing."

At or for six months ended 30 June

2024

2023

Change (%)

(£m unless otherwise stated)

Revenue

1,692

1,742

(2.9)

Adjusted EBITDA(2) (4)

951

1,070

(11.1)

Cash generated from operations

922

887

3.9

Profit before tax

323

279

15.8

Adjusted profit/(loss) before tax(1) (4)

178

(139)

228.1

Heathrow (SP) Limited consolidated nominal net debt(3) (4)

14,713

14,795

(0.6)

Heathrow Finance plc consolidated nominal net debt(3) (4)

16,666

16,806

(0.8)

Regulatory Asset Base(5)

20,233

19,804

2.2

Passengers (million)(6)

39.8

37.1

7.3