Heathrow Airport carried a record number of passengers in the first half of the year but warned a regulatory ruling on the level it can charge airlines in landing fees would hit the bottom line.
Some 39.8m passengers travelled through the UK’s busiest hub in the six months to July, up 7.3 per cent year-on-year, with routes to Asia and the Middle East proving especially lucrative.
The west London hub achieved its busiest day ever on June 30, when 268,000 passengers travelled through on over 1,300 flights.
Such soaring demand helped the airport turn a £178m adjusted pre-tax profit, a figure that will please investors following years of losses.
But in a statement, Heathrow warned the Civil Aviation Authority (CAA)’s “tight” ruling on landing charges had resulted in a £400m shortfall, while aeronautical revenue had fallen eight per cent.
Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) also fell 11.1 per to £951m.
The CAA proposed a further reduction in the level Heathrow can charge airlines for using its runways in June. Its latest change capped prices per passenger at an estimated £23.73 in 2025 and £23.71 in 2026.
It follows years of tension between Heathrow and its largest airlines, which have at points accused the hub of “abusing its power.”
Heathrow chief executive Thomas Woldbye said: “Serving record-breaking passenger numbers while continuing to deliver excellent customer service is no easy feat and is testament to the dedication of my hardworking colleagues.
“In addition to the nearly 40m passengers that flew through Heathrow during the first 6 months, so did 765 tonnes of cargo, supporting world leading British industries to access global export markets.”
Heathrow received a vote of confidence from the new Labour government this week when it noted the importance of airport expansion.
Labour has said it is “open-minded” about the prospect of a third runway at Heathrow as long as it meets certain tests, including on climate.
“We are encouraged by the new government’s recognition of Heathrow’s role in powering growth across the country, and look forward to working with Ministers to ensure we are firing on all cylinders and retain our global standing,” Woldbye added.