UK. Heathrow Airport today announced a +6.4% rise year-on-year in retail revenue per passenger to £8.33 for the nine months ended 30 September 2017. Retail revenue increased +9.6% to £492 million.
That performance easily outstripped passenger traffic growth of + 3.1% to 59.1 million and an aeronautical revenue increase of just +0.9% (see charts below).
The airport operator noted “strong momentum in retail income growth” had been driven by a combination of factors, including:
– increased airside participation and greater spend per participating passenger
– surging traffic and [post-Brexit -Ed] Pound Sterling depreciation boosted revenue, particularly duty and tax free and airside specialist shops
– catering income growth driven by Terminal 5 food outlet redevelopment and increased passenger participation before boarding
– The Terminal 4 luxury retail redevelopment started contributing to growth
Heathrow continue to unveil a wide array of customer service improvements, including some intriguing retail and F&B initiatives. Next up is a Terminal 3 personal shopping lounge.
Increased travel demand and continued progress on the UK regulator’s cost control objectives resulted in total revenues increasing +3.2% to £2,161 million and Adjusted EBITDA rising +5.7% to £1,347 million.
Heathrow Chief Executive Officer John Holland-Kaye said: “A strong performance over the summer – record numbers of passengers visiting Britain, double-digit growth in exports, strong global investor support and better service and value for passengers – shows what a critical national asset Heathrow has become.
“Heathrow expansion is not a choice between the economy and the environment – it must deliver for both. In post-Brexit Britain, it will connect our whole country to the global growth markets of tomorrow and a robust package of environmental commitments will help us expand responsibly. We are now getting on with delivering it.”
Heathrow delivered what it called “strong service and better value” for passengers, helping to drive a record Q3 Airport Service Quality score of 4.14 while passenger charges fell -2.1% .