Heathrow feels need for speed as earnings rise

Marion Dakers
HEATHROW yesterday posted an 11 per cent rise in adjusted yearly earnings thanks to a hike in airline fees, as its chief executive called for speed from the government’s commission on the future of UK aviation.

Revenues at Heathrow Limited rose 8.1 per cent to £2.46bn in 2012 despite flat passenger traffic of 87.4m.

Adjusted earnings before interest, tax, depreciation and amortisation jumped to £1.27bn.

The results included Stansted Airport, which was sold to Manchester Airports Group for £1.5bn in January.

Heathrow will use the proceeds of the sale to pay down its debt pile, which last year rose 9.9 per cent to £12.1bn.

The group reported an unadjusted pre-tax loss of £32.8m, down from £255.8m in 2011.

Chief executive Colin Matthews said the group would prefer to hear the Davies Commission’s recommendations on air capacity before its 2015 deadline.

“In terms of timing, we’d like the decision quicker... we think it’s urgent,” he said.

Heathrow, owned by Spanish infrastructure firm Ferrovial, last week set out its £3bn investment plan for the five years to 2019.