Heathrow is targeting record traffic figures this year, as 2023 saw the airport post its first annual profit since before the Covid-19 pandemic.
The London hub welcomed 79.2 million passengers last year – the third highest annual traffic figures in its history – and hopes to increase this to 81.4 million in 2024.
If successful this would surpass the airport’s previous record annual figures of 80.9 million passengers set in 2019.
As previously reported Heathrow restored its place as Europe’s busiest airport last year, with Istanbul airport in second place with 76 million, followed by Paris CDG (67.4 million), Amsterdam Schiphol (61.9 million) and Madrid (60.2 million).
However Istanbul is targeting 85 million passengers in 2024, which would likely see it regain the number 1 spot.
Heathrow recorded an adjusted profit before tax of £38 million in 2023, compared to a loss of £684 million in 2022. This represents the airport’s first annual profit since 2019, driven by “a strong Q4 performance”.
Heathrow said that it was currently in the process of upgrading 146 security lanes with new scanning equipment, as the UK’s major airports scramble to complete work ahead of the DfT’s June deadline.
It also highlighted plans to build a new dedicated baggage system at its Terminal 2, with BEUMER Group appointed to deliver the six-year project.
But Heathrow warned that “Airport charges were reduced by 20 per cent in real terms at the start of 2024 in line with the CAA’s H7 settlement, which means maintaining even a small profit will require us to close a £400 million gap with efficiencies and investment trade-offs over the next three years”.
Commenting on the news Heathrow CEO Thomas Woldbye, said:
“2023 was a good year for Heathrow from a challenging start to a great finish – We delivered much improved service for our customers, and managed to turn a small profit after three consecutive years of losses.
“That’s a great platform to build on, although in 2024, we are expected to deliver even further improved service to more passengers, but with airport charges cut by 20 per cent in real terms.
“We will have to pull every lever to become more efficient and make tough choices on where we spend and invest our money to overcome the huge cost challenge set by the CAA and remain profitable over the next three years.”
In other news it was reported in The Sunday Times that Heathrow’s plans for a third runway have been “shelved”, although a Bloomberg article subsequently quotes Heathrow as denying the report.
