Heathrow passenger numbers hit record - results for the three months ended 31 Mar 2024
Record-breaking start to 2024 – 18.5 million passengers travelled through Heathrow during Q1, more than ever before. The strong performance during what is traditionally a quieter period of the year was in part driven by growth on key business routes like Delhi and Mumbai, strong North American traffic and surging East Asian demand growing 40% versus Q1 2023. The summer getaway is expected to be the busiest on record, and we have a robust operating plan in place to keep the airport running smoothly, even if unnecessary industrial action materialises. Reflecting the strong performance, our 2024 passenger outlook has been bumped up to 82.4 million.
Refreshed business strategy launched – Setting the ambition to be an extraordinary airport, fit for the future, while renewing our commitment to making every journey better. We are focused on enabling a more efficient operation, that supports more passengers while delivering on our Heathrow 2.0 sustainability commitments. To support our new strategy and ensure we are delivering for our customers, we have streamlined roles and accountabilities across the Executive team. Javier Echave will become Chief Operating Officer on 26 April, and Ross Baker will become Chief Customer Officer on 1 May.
Investing in the UK’s hub – Our £1 billion next-generation security programme continues apace as we install 146 lanes across the airport, works have begun to replace the baggage system in Terminal 2 with a new state-of-the-art system, and we will shortly begin on a once-in-a-decade job to resurface both runways without impacting the airport’s operating day. These improvements will help enhance the service and resilience of the UK’s hub airport.
Prioritising for an efficient operation – We made a £83 million adjusted profit before tax in Q1. We have strong liquidity of £3.8 billion, and our focus remains on delivering excellent service to our customers while maintaining strong cost control and delivering efficiencies to close the £400 million gap in the H7 settlement set by the CAA. No dividends are currently forecast for 2024, although it is plausible subject to financial performance. We will continue to review optionality throughout the year.
Current Government policy is curtailing the UK’s growth and competitiveness – Ministers should rethink anti-growth policies like the “tourist tax” that discourage international visitors from spending in the UK; and unnecessary travel visas for transiting passengers that risk the UK’s global connectivity and Heathrow’s hub status. A supportive policy environment for aviation would deliver a much-needed economic boost by encouraging people to visit, spend and do business here in the UK.
Heathrow CFO Javier Echave said:
“It has been a successful start to the year thanks to colleagues delivering a consistent, reliable service to our passengers. As I close the chapter on eight years as CFO, I’m proud that Heathrow is on a strong financial footing with a clear flightpath ahead. On the horizon is Heathrow’s busiest summer yet with more passengers and destinations served than ever before. We’re ready to continue delivering.”
| At or for 3 months ended 31 March | 2024 | 2023 | Change (%) |
| (£m unless otherwise stated) | |||
| Revenue | 808 | 814 | (0.7) |
| Adjusted EBITDA(1) | 443 | 486 | (8.8) |
| Cash generated from operations | 460 | 374 | 23.0 |
| Profit/(loss) before tax | 189 | (60) | 415.0 |
| Adjusted profit/(loss) before tax(2) | 83 | (139) | 159.7 |
| Heathrow (SP) Limited consolidated nominal net debt(3) | 14,646 | 14,795 | (1.0) |
| Heathrow Finance plc consolidated nominal net debt(3) | 16,605 | 16,806 | (1.2) |
| Regulatory Asset Base(4) | 20,058 | 19,804 | 1.3 |
| Passengers (million)(5) | 18.5 | 16.9 | 9.5 |
