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Heathrow lands record performance - Results for the year ended 31 December 2018

Heathrow lands record performance - Results for the year ended 31 December 2018

  • Milestone year as 80.1 million passengers choose Heathrow – Heathrow climbed to the best year in its history after eight years of consecutive growth. For the first time, Heathrow welcomed a record-breaking 80.1 million passengers (+2.7% vs 2017) whilst delivering excellent service at a lower cost. Airport charges fell 1% to £21.78 and 81.9% of passengers said they had an “Excellent” or “Very Good” experience at Heathrow
  • New routes boost Britain’s trading opportunities – Heathrow doubled its Chinese connections in 2018, adding six new cities including Europe’s only flight to Shenzhen, the home of Asia’s Silicon Valley. These new services helped to push global trade flowing through Heathrow to 1.7 million tonnes
  • Domestic connections growing – Heathrow’s domestic connections are set to grow to 9 as new services to Newquay begin in April. Following the re-launch of the Inverness services, the UK’s two furthest mainland airports will now be connected to the nation’s hub boosting trade and travel opportunities
  • Robust financial performance – Heathrow remains a well-run business in strong financial health with revenues climbing 3% to nearly £3 billion on the back of strong retail spend and increased demand to fly – supporting £793 million of investment into the airport. Adjusted EBITDA climbed 4.4% to £1,837 million. Remaining competitive in the lead-up to expansion remains a priority, with a focus on efficiency resulting in operating costs per passenger falling 2% to £14.14
  • Heathrow bucks the infrastructure investment trend – Heathrow remains unique amongst global infrastructure assets, raising close to £2.3bn from private investors across seven currencies (up from £1bn in 2017). Growing demand to invest in Heathrow underpins the airport’s plans to entirely privately finance expansion and builds the airport’s financial resilience ahead of Brexit (extending our liquidity horizon to March 2021)
  • Expansion momentum as masterplan takes shape – Following one of the largest ever parliamentary majorities on the Airports National Policy Statement, Heathrow’s preferred masterplan continues to take shape. The airport will release the detailed plans in further consultation in June 2019, and remains on-track to submit a planning application in 2020 and for the first flights to use the new runway in 2026

John Holland-Kaye, Chief Executive Officer of Heathrow, said:

“2018 was the best ever year at Heathrow.  We were voted best airport in Western Europe by passengers, while continuing to drive down costs.  We improved safety and closed our gender pay gap.  We were named “Responsible Business of the Year” and won an overwhelming parliamentary majority in support of Heathrow expansion.  We remain on track to open the new runway in 2026.  I am very proud of the outstanding work of 76,000 colleagues across the airport, who are delivering for Britain."

At or for year ended 31 December

2017 

2018 

Change (%)

(£m unless otherwise stated)

 

 

 

Revenue

2,884

2,970

             3.0

Adjusted EBITDA(1)

1,760

1,837

             4.4  

EBITDA(2)

1,909

1,954

  2.4

Cash generated from operations

1,733

1,787

             3.1

Cash flow after investment and interest(3)

484

420

(13.2)

Adjusted profit before tax(4)

217

267

  23.0

 

 

 

 

Heathrow (SP) Limited consolidated nominal net debt(5)

12,372

12,407

0.3

Heathrow Finance plc consolidated net debt(5)

13,674

13,980

2.2

Regulatory Asset Base(5)

15,786

16,200

2.6

 

 

 

 

Passengers (million)(6)

78.0

80.1

2.7

Retail revenue per passenger (£)(6)

8.45

8.94

5.8

This press release was sourced from Heathrow on 21-Feb-2019.