Gatwick enjoys strong summer of retail profit despite modest passenger growth
Gatwick enjoyed rising profit in the first half of the financial year on the back of strong retail trading at the airport, despite modest passenger growth.
In terms of traffic, the UK’s second-biggest airport felt the impact of a tricky economic climate for the aviation industry, with 26.6m passengers passing through the gates, just a 0.2 per cent increase year-on-year.
The figures
Core profit was £350.6m for the six months to 30 September, a 7.9 per cent rise on the same period last year.
Revenue rose 5.6 per cent to £541.3m, while passenger numbers increased 0.2 per cent for the period, equating to 56,803 extra customers using the airport.
Why it’s interesting
Several airlines opened new routes this summer, including to Brazil and Argentina. This gave the airport a 2.3 per cent boost on long-haul journeys, with 107,340 extra passengers making longer flights.
But as the aviation industry suffered a softer-than-usual summer of trading, Gatwick turned to its retail operations to generate profit.
Net retail income increased by 3.6 per cent to £109.9m, with an increase in income per passenger of 3.3 per cent to £4.1m.
Over the summer it also published its final so-called masterplan for growth over the coming years, featuring the routine use of its standby runway so as to increase capacity at the airport.
It hopes to serve around 70m passengers by the early 2030s.
What Gatwick said:
Stewart Wingate, chief executive officer, said: “As the UK enters an important new chapter on the global stage, new links created to key markets such as South America will play a crucial role in the country’s economy and national identity.
“While we were saddened by the recent collapse of Thomas Cook, we are confident in our future prospects and look forward to easyJet and other airlines using these slots going forward.”
“A growing Gatwick means a thriving region and as the airport continues to be transformed under its new ownership – from new global connections, to improved transport links, new jobs and business opportunities – the ripple effect will be felt across all corners of our region.”