London Heathrow: Strong Start to 2023

London Heathrow Airport had 16.9 million passengers in Q1 of 2023 , more than Paris, Frankfurt and Amsterdam.

Delivering excellent and consistent passenger service – Passengers also rated Heathrow’s service ahead of our main EU hub rivals, with a strong performance during the half term and Easter holidays.

Robust contingency plans kept the airport running smoothly throughout industrial action over the Easter peak. Passengers can expect to travel as usual during the Coronation and half-term peaks, regardless of further unnecessary strike action by Unite.

Heathrow has been working with partners on further improvements to service, such as Border Force’s successful trial of extending eGates to 10+ year-olds over Easter. 

Heathrow remains loss-making, and no dividends are in the pipeline for 2023.

Heathrow has not yet returned to profit, with Adjusted losses of £139 million in Q1 due to the revenue allowance in the CAA’s H7 settlement being set too low.

In a statement, the Airport explained:

We have appealed the H7 settlement to the CMA.

Supporting the UK’s competitiveness.

We have worked to better connect all of the UK to global markets, with Loganair taking advantage of our domestic charges discount to open up new routes to Northern Ireland and Scotland and opening up connections to 10 Chinese cities as borders reopen.

Frequencies to Beijing and Shanghai will increase to twice daily before the summer. We urge Ministers to make the UK more competitive for overseas visitors versus the EU by removing the ‘tourist tax’ of VAT on shopping which will drive more spending in shops, restaurants, and attractions across Britain.

Continued steady progress towards sustainability goals – We were pleased to be the first airport to achieve science-based validation from the SBTi for our 2030 carbon reduction goals.

As the global aviation sector starts to decarbonize, we urge the government to move faster to produce Sustainable Aviation Fuel onshore, increasing energy security and creating skilled green jobs in leveling-up areas.

3 Months Ending March 31 (£m unless otherwise stated)	2022	2023	Change (%)
Revenue	516	814	57.8
Cash generated from operations	278	374	34.5
Loss before tax	(191)	(60)	68.6
Adjusted EBITDA(1)	273	486	78.0
Adjusted loss before tax(2)	(223)	(139)	37.7
Heathrow (SP) Limited consolidated nominal net debt(3)	14,579	14,681	0.7
Heathrow Finance plc consolidated nominal net debt(3)	15,786	15,881	0.6
Regulatory Asset Base(4)	19,182	19,591	2.1
Passengers (million)(5)	9.7	16.9	74.2