Heathrow records 31% jump in annual profits
Owners of the west London airport reported pre-tax profits of £917 million for 2024.
Heathrow has said a 31% surge in annual profits and a record year for passengers underscores the need for it to build a third runway.
Owners of the west London airport reported pre-tax profits of £917 million for 2024, up from £701 million in 2023, with a 6% rise in annual passengers travelling through its four terminals to 83.9 million.
But revenues fell 3.5% to £3.56 billion and underlying earnings also dropped 8.7% to £2.04 billion, which Heathrow said was a result of lower charges paid by airlines, set by regulator the Civil Aviation Authority.
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 £1 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, Mr 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.”
Mr Woldbye insisted Heathrow’s project will not be affected if Gatwick’s expansion plan is approved by Transport Secretary Heidi Alexander.
He told the PA news agency: “The airlines that we serve, when you compare to Gatwick, are really quite different, and I think there will be demand for both (airports) in the future.”
Asked about concerns raised by Heathrow’s airlines about the cost of expansion, he said: “Our eyes are really on the big prize, which is to deliver the vision of a third runway and all the benefits that will bring, that will also bring benefits to the airlines.
“All the airlines that I speak to want growth.
“We need to determine the right kind of regulation for a third runway, so we’ll be working on that with Government and with the airlines in the future.
“There will be cost of a third runway of course, and those costs have to be covered.”
He added that ministers “are listening”, after Heathrow called for a new regulatory model, planning reforms and airspace modernisation.
Heathrow announced that the “strong 2024 business performance” means it will pay a dividend of £250 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 – 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.