London Heathrow Airport retail revenue rose marginally (+0.8%) to £722 million/$933 million in the 12 months ending 31 December 2019 with retail revenue per passenger flat at £8.93/$11.54 (2018: £8.94).

Heathrow Airport handled 80.9 million passengers (+1%) last year, a results statement from operator Heathrow (SP) Limited showed.

Revenue from retail concessions contributed the lion’s share of total retail income (see below), as the Pound Sterling’s drop in value against the Euro and dollar aligned with greater shopping participation.

Group revenue climbed by 3.4% to £3,070m in light of increased flight demand, with adjusted EBITDA rising by 4.6% to £1,921m.

INTERNATIONAL PAX UP 2%

Intercontinental traffic rose by 2.2% spurred by North America due to increased frequencies, additional services and new routes to destinations such as Pittsburgh and Charleston through British Airways.

Extra services to Marrakesh, Seychelles, Durban and Johannesburg buoyed strong Africa traffic growth, while Middle East traffic rose due to larger aircraft and increased load factors. On the other hand, passenger traffic in Asia Pacific was impacted by Jet ceasing its operations.

Short haul routes contracted by 0.3% owing to a number of carriers reducing services.

The airport states its case for expansion in a capacity-strained environment has strengthened upon newly released figures showing growth at Paris- Charles de Gaulle is set to outpace London Heathrow.

Elsewhere, Heathrow acknowledges climate change as ‘the biggest challenge of our generation’ and achieved carbon neutral status in January following more than £100m in investments.

CORONAVIRUS: NOT EXPECTING MATERIAL IMPACT

John Holland-Kaye, CEO, Heathrow Airport said: “Within two years, Charles de Gaulle will overtake Heathrow as the biggest airport in Europe. Heathrow’s new runway is ready to turn ‘global Britain’ into more than just a campaign slogan. It’s the key to the UK’s success after Brexit and will ensure we stay ahead of our European rivals.

“Expansion will be built within legally binding environmental targets, creating lower airfares for passengers, connecting every corner of Britain to global growth and all at no cost to the taxpayer. It’s time to get on with it.”

In an outlook statement, Heathrow confirms its adjusted EBITDA performance in 2020 remains consistent with a forecast in its investor report published in December.

“We are concerned about the global impact of the Covid-19 virus and are closely monitoring its impact on our business and stakeholders,” read the statement.

“At this point, and based on our central case, we do not expect this to have a material negative impact on our financial results. We will continue to monitor the situation carefully over the coming months and will provide updates in our quarterly results and semi-annual investor report.”