Heathrow: Earnings jump despite cost warnings
Heathrow Airport’s earnings before interest, taxes, depreciation and amortisation (EBITDA) edged up by 0.8 per cent in the first half of the year compared to the first six months of 2024 despite fears energy bills and maintenance costs would deal a blow to its growth.
The airport previously predicted a hit to its earnings, warning that pressures from security requirements and contractual expenses could lead to a decrease of around three per cent.
But bosses might be partly relieved as adjusted earnings inched up while revenues exceeded £1.7bn.
Heathrow’s adjusted profit slid £80m from £119m, with costs taking a bite out of rewards for bosses.
Higher national insurance contributions (NICs) introduced by Chancellor Rachel Reeves at her large tax raid on employers last autumn were cited as a cost stalling its potential while soaring electricity prices also prevented profits from rocketing.
Its adjusted profit before tax was £121m in the first six months of the year.
Heathrow sees trade growth
Bosses also said it accepted recommendations made by former transport secretary Ruth Kelly after she reviewed its operations following a power outage in March, raising questions about Heathrow’s sleeping chief executive Thomas Woldbye.
The airport said there was a risk critical events in the future could lead to the closure of Heathrow.
But it remained optimistic about its prospects given it saw 2.4 per cent growth in trade due to long-haul flights and larger aircraft.
No dividends were paid out on this occasion.
Woldbye praised record passenger numbers as he said the airport was delivering on its strategy to become “extraordinary”.
“Our new five-year investment plan will mean faster, more reliable journeys, more on-time flights and unlock room to grow – all while delivering better value for customers.
“We will soon submit our long-term expansion plans to the government, providing the UK with the opportunity to stay competitive, boost jobs and drive nationwide growth.
“Heathrow has an exciting future ahead and we are ready to get going.”