Heathrow has finally returned to profitability and promises that it will transport more passengers in 2024 than ever before. This follows the pandemic and billions of pounds in losses as well as a bitter dispute with its airline clients.
Heathrow has made a profit in 2023 of £38million after the long haul from empty terminals due to Covid-19 travel restrictions. Heathrow, Europe’s busiest airport for international flights, has four terminals and two runways west of London. The airport says it is ready to take flight, with passenger numbers forecast at 81.4 million in 2018, a record. This will be ahead of the 79.2 millions handled in 2023.
The company is still at a crossroads. Shareholders are leaving the company because of the debts (£16,8 billion ) and the lack of dividends for the last year, the three years prior, or for the current year.
The decision of Ferrovial, the Spanish infrastructure company which led the acquisition of BAA two decades ago has prompted investors to speak for another 35 per cent who want to cash out their shares.
Arcadian (the former AXA Fund) and PIF (the Saudi sovereign wealth funds), who together purchased Ferrovial’s share for £2.3 billion each, seem unwilling to buy the remaining 35 percent stake from Canadian investors Caisse de Depot et Placement du Quebec, GIC of Singapore, and Australian Retirement Trust.
Mubadala – the Abu Dhabi sovereign fund – has been reported to be showing interest in breaking the impasse. Qatar’s sovereign wealth fund is currently Heathrow’s biggest shareholder with 20 percent.
Heathrow revenue increased by 26 percent to £3.68 billion (£3.66 billion) in 2023. A 31 percent increase in landing and take-off charges was offset by a 23 percent rise in terminal income, mainly retail and catering.
Heathrow CEO Thomas Woldbye succeeds John Holland-Kaye
Thomas Woldbye is the former head of Copenhagen Airport who took over Heathrow in the fall after John Holland-Kaye left.
He said that “that’s a good platform on which to build”, but warned about “tough decisions on where we invest and spend our money” after a shootout with the Civil Aviation Authority, leaving it with lower increases for take-off and land charges than it demanded. He warned that “we will have to use every lever in order to become more effective.”