Heathrow Airport has reported Q1 revenue +10.8% to £576m ($970.3m); EBITDA +31.8% to £319m ($537m); and its best customer satisfaction results.
Heathrow’s retail income rose by 0.9% to £108m ($181.9m) while net retail income per passenger grew by +0.5% to £6.36 ($10.71) as year-on-year traffic grew by +0.5% to 16m, although this was not a fair comparison, as the Easter period is later this year.
Retail income was led by duty and tax free with £27m ($45.4m); car parking up 9.5% to £23m ($38.7m); airside specialist shops £21m ($35.3m); catering £9m ($15.1m) and bureaux de change £8m ($13.4m)
Heathrow said that retail stores – including duty and tax free and luxury outlets – were flat in Q1 compared to last year, which was a partial reflection of the commencement of a significant extension to the luxury retail space in Terminal 5 which is expected to cause some disruption to existing activities.
In a statement, airport management said: “As one of the key initiatives to further develop Heathrow’s award winning retail activities in the new regulatory period, the extension should deliver growth in retail income.
The first flight is scheduled to take place at Heathrow Terminal 2 on 4 June, 2014.
TERMINAL 2 IS ON TIME
“Performance was also likely to have been impacted by the strength of sterling relative to the same period last year and the shift in the Easter holiday peak demand from March in 2013 to April in 2014.”
Meanwhile, the airport also reports that ‘Terminal 2: The Queen’s Terminal’ is still on track to open for its first flight on 4 June 2014. Heathrow is also about to submit its refined proposals for a third runway to the Airports Commission reflecting input from public consultations
Colin Matthews, outgoing CEO at Heathrow, said: “Heathrow performed well in the first quarter. Financial performance was strong and passenger satisfaction ratings were at their highest ever level, reflecting steady operational improvement.
“Terminal 2 is on time and on budget and will further improve Heathrow’s passenger satisfaction ratings when it opens on 4 June.
“Long-term prospects are also bright and our submission to the Airports Commission in May will set out the case for building on Heathrow’s strength as a global hub that can connect all of the UK to the world’s fastest growing markets.”