LONDON - Heathrow Airport's management has released its December 2024 Investor Report, outlining the airport's financial performance and expectations for the coming years. As Europe's busiest airport, Heathrow saw a record 76.8 million passengers through November 2024 and has been recognized for its connectivity and service quality.
The report, distributed by LHR Airports Limited and Heathrow Finance plc, includes actual financial figures for 2023 and forecasts for 2024 and 2025. For 2024, Heathrow anticipates 83.8 million passengers, a 5.8% increase from the previous year. However, adjusted EBITDA is expected to drop to £1,963 million, a decline of 11.9% compared to 2023. The forecasted revenue for 2024 is set to decrease by 5.1% to £3,499 million, impacted by lower aero charges.
Looking further ahead, the airport expects a marginal passenger increase in 2025 to 84.2 million. Adjusted EBITDA for that year is projected to reach £1,952 million, a slight decrease from 2024. Revenue is anticipated to rise by 2.0% to £3,568 million, with non-aeronautical revenue expected to grow by 7.7%, driven by higher passenger volumes. Operating costs are projected to increase due to cost pressures and investments in technology and sustainability.
Heathrow is set to raise its investment by over £200 million during the H7 regulatory period to £4.5 billion, maintaining over £1 billion in annual investments for 2024 and 2025. The airport is also engaging in the H8 price control process with the Civil Aviation Authority (CAA) and airlines.
Additionally, the report mentioned the sale of a 37.62% stake in FGP Topco Limited by Ferrovial and the Tagging Shareholders, completed on December 12, 2024, with changes in the shareholder composition and board members detailed on page 13 of the report.
Heathrow's commitment to sustainability remains strong, with plans to deliver 2.5% of Sustainable Aviation Fuel (SAF) in 2024, increasing to 3% in 2025. The airport has also issued two sustainability-linked bonds and accessed the private placement market with a green issuance.
The full Investor Report is available to creditors of Heathrow and provides a comprehensive view of the airport's financial health and strategic direction. This information is based on a press release statement from Heathrow Airport's management.
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