Heathrow grew at its fastest rate in five years in 2017, helping Britain’s economy to thrive by welcoming a record 78 million passengers (+3.1%) while retaining its position as Europe’s top-rated major airport for the third year running.
Heathrow continues to deliver for the UK with a 10.2% increase in cargo volumes promoting more British trade growth, support for British jobs with close to £700 million invested in the airport over the year and new services to Portland and Santiago.
Strong financial performance underpins Heathrow’s expansion plans, with revenues of £2,884 million up 2.7% and Adjusted EBITDA of £1,760 million up 4.6% reflecting lower operating costs and strong retail growth while passenger charges decreased by 2.0%.
Over £1.0 billion in debt financing completed, enhancing resilience and simplifying Heathrow’s debt financing arrangements.
Significant progress on expanding Heathrow, with the airport’s first planning consultation underway, a shortlist of logistics hubs around Britain to help build it, the government committing to a vote in Parliament this summer and the CAA progressing the expansion regulatory framework.
John Holland-Kaye, Chief Executive Officer of Heathrow, said:
“Heathrow had a fantastic 2017 – welcoming a record 78 million passengers, giving our best service ever and offering better value for our passengers with lower airport charges.
“But while we are squeezing out small bits of growth, our rivals in France and Germany are overtaking us – for Britain to thrive post-Brexit, the Government needs to crack on with Heathrow expansion as quickly as possible with a vote in Parliament before the summer.”
At or for year ended 31 December 2017 2016 Change (%)
(£m unless otherwise stated)
Revenue 2,884 2,807 2.7
Adjusted EBITDA 1,760 1,682 4.6
EBITDA 1,909 1,726 10.6
Cash generated from operations 1,733 1,652 4.9
Cash flow after investment and interest 484 387 25.1
Pre-tax profit 217 267 (18.7)
Heathrow (SP) Limited consolidated net debt 12,372 11,908 3.9
Heathrow Finance plc consolidated net debt 13,674 13,005 5.1
Regulatory Asset Base 15,786 15,237 3.6
Passengers (million) 78.0 75.7 3.1
Retail revenue per passenger (£) 8.45 8.09 4.5