Profits slide at Heathrow as costs mount
By Abigail Townsend
Date: Wednesday 23 Jul 2025
(Sharecast News) - Interim profits fell sharply at Heathrow despite record passenger numbers, the airport confirmed on Wednesday, as costs mounted.
A total of 39.9m passengers used the west London hub - Europe's busiest - in the six months to June end, a record high. Revenues were 1.9% higher at £1.7bn.
Heathrow said increased long-haul flying, a 1.4% uptick in retail revenues and "robust" food and beverage sales had helped offset softer trading in luxury, duty-free and bureaux de change.
Adjusted earnings before interest, tax, depreciation and amortisation nudged 0.8% higher to £959m.
But pre-tax profits fell sharply, down 37.2% at £203m, after a spike in maintenance costs, employer National Insurance contributions and electricity prices.
Overall, adjusted operating costs were 3.2% higher at £765m.
Looking to the rest of the year, and Heathrow reiterated is guidance for annual EBITDA of £1.96bn, a 3% fall year-on-year.
Heathrow wants to increase capacity and boost passenger numbers through a £10bn, five-year investment programme running from 2027.
As part of that, it has asked the Civil Aviation Authority to approve a 17% rise in landing fees, to £33.26 per passenger. The plan has drawn criticism from airlines, however, who argue that Heathrow is already one of the world's most expensive airports.
Heathrow said on Wednesday that the plan would "improve passenger experience, boost operational resilience and enable airline growth".
Thomas Woldbye, chief executive, added: "We are delivering on our vision to become an extraordinary airport, fit for the future.
"We will soon submit our long-term expansion plans to the government, providing the UK with the opportunity to stay competitive, boost jobs and drive nationwide growth."
Longer term, and a formal planning application for a long-anticipated third runway is expected to go before Parliament by 2029, with the runway potentially operational by 2035.
The government has indicated it will be back the development, despite opposition from environmental groups.
Heathrow is owned by a number of consortium of funds, including France's Ardian, Qatar Investment Authority, the Public Investment Fund of Saudi Arabia, Singapore's GIC and China Investment Corporation.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN