Heathrow welcomed a record-breaking 83.9 million passengers last year – up 6%, as Europe’s busiest airport prepares to submit detailed plans for its long-awaited third runway.
The bumper figures propelled pre-tax profits to £917 million, a 30.8% rise on 2023, despite overall revenue edging down 3.5% to £3.6 billion.
Rachel Reeves, the Chancellor, endorsed Heathrow’s expansion plans in a recent speech on economic growth, describing the extra runway as “badly needed”. The airport has now confirmed it will lodge formal proposals with the Government this summer. Should the scheme secure planning consent, Heathrow’s chief executive Thomas Woldbye hopes aircraft could begin using the new runway from 2035.
“This is an exciting time for our customers, our colleagues and the country,” Woldbye said. “Over the coming decade, we’re making the largest private investment in the UK’s transport network to ensure Heathrow remains a world-class hub.”
He acknowledged, however, there are “many challenges that we need to get out of the way”, including planning permission and meeting climate standards set by the Government.
In its annual update on Wednesday, Heathrow revealed underlying earnings dropped 8.7% to £2 billion last year. Management blamed this on airlines facing lower charges imposed by the Civil Aviation Authority, which regulates fees.
Woldbye painted a largely optimistic picture, highlighting Heathrow’s strategic importance to British trade. Cargo volumes rose 10% over the year, contributing to what he called the UK’s “gateway to growth”. Heathrow invested more than £1 billion in facility upgrades to bolster resilience and improve customer experience, and will distribute a £250 million dividend to shareholders in the coming weeks—its first payout in five years.
Heathrow’s ownership structure saw a reshuffle last December when French firm Ardian acquired a 23% stake, becoming its largest shareholder, while Saudi Arabia’s sovereign wealth fund took a 15% slice. These transactions involved Spanish company Ferrovial—the airport’s dominant shareholder since 2006—selling off most of its 25% holding, along with disposals by other investors. Heathrow’s remaining shareholders include sovereign wealth funds from Qatar and China, as well as several major infrastructure funds.
Despite ongoing cost pressures and regulatory hurdles, management is intent on pushing forward with expansion. Woldbye argued that building new capacity is critical for retaining Heathrow’s global competitiveness, particularly as international passenger numbers continue to rebound.
The proposed runway, if approved, would mark one of the largest infrastructure projects in the UK, with plans for new terminals and redesigned flight paths alongside the runway extension. In championing the scheme, Chancellor Reeves emphasised the importance of robust transport infrastructure to attract investment, strengthen exports and underpin the UK’s post-pandemic recovery.