Heathrow delivers strong summer with eyes on future - Results for nine months ended 30 Sept 2023
Heathrow is back at its best after a super summer - Our colleagues welcomed 29 million passengers this summer, taking the total for the first nine months of the year to 59 million. Passenger satisfaction levels have continued to exceed 2022 levels.
Britain's hub "the most connected airport” globally - Britain's hub airport reclaimed the crown as "the most connected airport in the world", providing a boost to the country's growth potential and prosperity. With connections to over 214 destinations and more coming on board with flights to Peru and Turkmenistan commencing this winter season, Heathrow connects all of Britain to global growth.
Multi-billion pound investment in Britain's hub is underway – The CAA has set a challenging settlement, but we plan to continue investing in key upgrades to the airport with our transformative security programme, which is underway, and the supplier for the new Terminal 2 baggage system, which will be announced by the end of the year. Over the next three years, we will also invest over £200 million to reduce our carbon emissions.
Losses narrow to £19 million - Overall losses have fallen to £19 million as we continue to focus on our strategy to manage costs and drive growth within a tight regulatory framework. Gearing is at historically low levels and our balance sheet is strong, with £4.6 billion of liquidity sufficient to cover all obligations for at least 24 months. No dividends are forecast for 2023.
Ministers should back British growth in the Autumn Statement - The Government should back growth in the Autumn Statement and create new jobs in Britain by pressing ahead at pace with a domestic Sustainable Aviation Fuels industry, re-instating tax-free shopping for Britain's retailers, and committing support to Southern and Western rail links to Heathrow which will increase connectivity to the nation's hub. Britain is in a race for the growth and new jobs of the future, and Ministers must take action now to avoid the UK falling behind its competitors.
Successful recovery caps tenure of transformational CEO - Earlier this month, John Holland-Kaye stepped down as Heathrow CEO after nine transformative years in post. He made Heathrow into a customer service business with a clear path to net zero by 2050 and a plan to grow and connect all of Britain to global growth. Thomas Woldbye has taken the helm, spending his first weeks building relationships with colleagues, Team Heathrow partners and local communities.
Heathrow CEO Thomas Woldbye said:
“Heathrow is already a great national asset for Britain - and our best days still lie ahead. We've got a clear plan to connect all of Britain to global growth, a flight path to net zero by 2050, and while we have a tight settlement from the CAA, we will upgrade the airport for our customers. I'm excited to take on the challenge and looking forward to working with Team Heathrow to build an even stronger hub for Britain in the next decade.“
| At or for 9 months ended 30 September | 2022 | 2023 | Change (%) |
| Passengers (million)(5) | 44.2 | 59.4 | 34.4 |
| (£m unless otherwise stated) | |||
| Revenue | 2,106 | 2,739 | 30.1 |
| Adjusted EBITDA(2) | 1,252 | 1,701 | 35.9 |
| Cash generated from operations | 1,252 | 1,540 | 23.0 |
| Profit before tax | 643 | 618 | (3.9) |
| Adjusted loss before tax(1) | (442) | (19) | 95.7 |
| Heathrow (SP) Limited consolidated nominal net debt(3) | 14,579 | 14,664 | 0.6 |
| Heathrow Finance plc consolidated nominal net debt(3) | 15,786 | 15,845 | 0.4 |
| Regulatory Asset Base(4) | 19,182 | 19,953 | 4.0 |
