Duty- and tax-free shopping continue to account for more than one-third of total retail revenue at London Gatwick.

London Gatwick (LGW) retail revenue for first half of 2026 reached £107.4m, representing a decrease of £1.2m (1.1%) compared to the same period in 2025.

The company reports that the result reflects a 4.7% drop in passengers, partially offset by strong trading performance, and that net retail income per passenger increased by 4%.

Key updates influencing the results period include upgrades to the South Terminal departure lounge which took place in the second half of 2025, following the refurbishment of the North Terminal departure lounge in 2024.

These have ‘enhanced the passenger experience and positively impacted underlying retail revenue this year’, says the hub.

The continued diversification of  the passenger mix with the introduction of new routes (the airport currently serves 231 destinations through more than 60 airlines) especially to Africa and Southeast Asia, contributed to higher duty- and tax-free shopping spend per passenger, according to LGW, with the segment continuing to account for more than one-third of total retail revenue.

GATWICK AIRPORT FINANCE PLC. Report and Unaudited Condensed Interim Consolidated Financial Statements for the six months ended 30 June 2026.

Specialist shops grew by 1.5% reflecting the contribution from new brands that opened towards the end of 2025 such as Pandora, Venchi and Discover London.

The airport does note, however, that ‘since the start of the year we observed an emerging trend following the relaxation of certain security rules on liquids’.

‘This has negatively impacted the sales of drinks and other beauty products (including suncreams and shampoos) compared with the prior period’, it relayed in the financial statements.

Catering also remains a key category. While revenue was 0.6% lower in the first half of 2026, spend per passenger increased by 3.8%. The opening of Gail’s, in September 2025, reportedly ‘significantly contributed to this increase’.

Other retail decreased by £0.8m. This was ‘mainly due to lower bureau income, in line with wider sector trends, and reduced demand for certain products, such as Fast Track passes’.

Looking aead, Gatwick is set to enhance the offer with new F&B outlets in both terminals opening in the second half of the year including salad chain Tossed opening in the North Terminal, and a new Fever Tree bar located in the South Terminal International Departure Lounge.

GATWICK AIRPORT FINANCE PLC. Report and Unaudited Condensed Interim Consolidated Financial Statements for the six months ended 30 June 2026.

The retail revenues figures form part of the overall picture of Gatwick’s total revenue for the six months ended 30 June 2026 reaching £515.2m – an increase of £23.8m (4.8%) compared with the same period in 2025. EBITDA increased by 5.5% to £276.5 million.

However, 2026 includes two large one-off items that are unique to 2026, according to the company. One relates to the early termination of a property lease after the tenant upgraded to a larger facility, and the other compensation relates to construction delays in connection with a capital project. These total £16.5m of revenue.

Adjusting for this, underlying revenue increased by £7.3m (1.5%) against a backdrop of a 4.7% decline in passengers.

Excluding the impact of these one-off items, the revenue mix ‘remained broadly consistent year-on-year’ states the hub.

Airport and other traffic charges income represents around half of total revenue, with retail being the next largest category.

While passenger numbers were impacted by the conflict in the Middle East, demand for travel remains strong, as evidenced by the launches of services operated from seven new carriers, including Jet2, Air France, Condor and Eurowings, and a significant increase in the number of carriers serving the airport. A further two airlines – Air Zimbabwe and Air Arabia – also launched in the second half of this year.

Northern Runway Programme advances

The results come shortly after London Gatwick received final approval to move forward with the Northern Runway Programme, following the completion of an eight-year legal and planning process.

Pierre Hugues-Schmit, Chief Executive, London Gatwick said: “Despite a challenging geopolitical and economic backdrop, London Gatwick has continued to perform well, grow its network and deliver a world-class service for passengers.

“We are also excited about our longer-term growth opportunities and with the legal process for the Northern Runway Programme now complete, we can turn our focus from planning to detailed design work and delivery. This is one of the UK’s largest privately financed infrastructure projects and, alongside our existing £1.9 billion capital investment programme, demonstrates our confidence in Gatwick’s future and our commitment to continuing to invest in our infrastructure while supporting jobs, trade, tourism and the regional economy.

“As we look ahead, it is important that the wider policy environment continues to support businesses that are investing for the long term. In the build-up to the budget therefore, our key ask of Government is for a more stable and proportionate approach on key issues such as business rates, to ensure the UK aviation sector remains competitive and affordable for passengers.”

The airport’s £1.9 billion capital investment programme also continues to progress, with the £140m Pier 6 western extension remaining on schedule for completion in early 2027.

READ MORE: Maker’s Mark unveils airport-exclusive Artist Series for GTR

READ MORE: Areas enters UK market with acquisition of TRGC

READ MORE: Cartwright & Butler’s Post Box Tin delivers first class results in travel retail