London Heathrow airport expects to pass pre-pandemic traffic highs next year even though it sees revenues and profits likely to fall as lower aeronautical fees kick-in.
In an investor update today, Heathrow Airport says passenger levels are set to reach 79.1 million this year, an increase of 28% on 2022.
That puts its within touching distance of the 80.9 million passengers it handled in 2019, before traffic collapsed amid wide-ranging travel restrictions during the pandemic.
Heathrow is forecasting a 2.9% rise in passenger numbers next year. That would take it to a new high of 81.4 million.
| 2024(f) | 2023(e) | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Source: Heathrow Airport data | |||||
| 81.4m | 79.1m | 61.6m | 19.4m | 22.1m | 80.9m |
While the airport operator sees passenger volumes rising next year, it expects revenue to fall 6% from an expected £3.67 billion (£4.66 billion) this year to around £3.45 billion in 2024. That is driven by an 11% drop in aeronautical revenues, reflecting the lower charges ceiling set by UK regulator the CAA as part of price caps for the period through to 2026.
It also cites the imposition of lower aeronautical charges for an expected 16% fall in adjusted EBITDA next year, which it forecasts will drop from an estimated £2.25 billion this year to £1.89 billion in 2024.
