26th Feb 2025 08:20
(Alliance News) - Heathrow has said a 31% surge in annual profit and a record year for passengers underscores the need for it to build a third runway.
Owners of the west London airport reported pretax profit of GBP917 million for 2024, up from GBP701 million in 2023, with a 6% rise in annual passengers travelling through its four terminals to 83.9 million.
But revenue fell 3.5% to GBP3.56 billion and underlying earnings also dropped 8.7% to GBP2.04 billion, which Heathrow said was a result of lower charges paid by airlines, set by regulator the Civil Aviation Authority.
UK Chancellor Rachel Reeves gave her backing for Heathrow's third runway project in a speech on growth last month.
The airport responded by saying it would submit detailed plans to the government in the summer.
Heathrow Chief Executive Thomas Woldbye said: "2024 underscores why Heathrow is the UK's gateway to growth. Our colleagues welcomed a record number of passengers with good service, cargo volumes increased 10% boosting British trade, and we invested over GBP1 billion to improve facilities and boost resilience which creates more value for customers at Britain's front door.
"Securing future economic growth means investing in the infrastructure that powers it."
Referring to the third runway plan, Woldbye said Heathrow will make "the largest private investment in the UK's transport network" over the next decade to modernise the airport and make it "a competitive world-class hub fit for the future".
He added: "This is an exciting time for our customers, our colleagues and the country, and we're looking forward to working with the government to deliver it."
Heathrow announced that the "strong 2024 business performance" means it will pay a dividend of GBP250 million to its shareholders in the coming weeks.
This will be its first dividend payment in five years.
In December 2024, French company Ardian completed a deal to become Heathrow's largest shareholder with a 23% stake, while Saudi Arabia's sovereign wealth fund purchased a 15% share.
This was a result of Spanish company Ferrovial SE – which had been the airport's largest shareholder since 2006 – selling the majority of its 25% stake, and sales by other shareholders.
Heathrow's other owners include sovereign wealth funds from Qatar and China, and large infrastructure funds.
By Neil Lancefield and Holly Williams
Press Association: Finance
source: PA
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