UK. London Heathrow Airport has posted a +7.7% increase in retail revenue in full-year 2016, to £612 million (US$769 million).
Retail revenue per passenger was up +6.7% year-on-year, to £8.09 ($10.16).
The airport said the retail income growth was the strongest it had seen in recent years. It noted that the depreciation of the Pound following the result of the EU referendum in June boosted second-half results, particularly at duty and tax free (+7.8% year-on-year growth) and airside specialist shops (+15.0%).
Heathrow also said that the luxury retail redevelopment at Terminal 5 was continuing to deliver growth, with a similar initiative completed in T4.
The airport’s food & beverage business posted growth of +8.9% as a result of new and refurbished outlets and increases in customer numbers, Heathrow said.
Car parking also delivered strong revenue growth (+6.5%) last year, the airport noted, with “continued take-up of its expanded car parking product range and successful yield management”.
Heathrow handled a record 75.7 million passengers in 2016, up +1.0% year-on-year. The capacity-constrained airport received a boost in October as the UK government announced its support for a third runway and launched a public consultation on a National Policy Statement.
The airport posted overall revenue growth of +1.5%, to £2,807 million (US$3,525 million). It said adjusted EBITDA growth of +4.8%, to £1,682 million (US$2,112 million) reflected “continued cost control and strong retail income growth”.
Heathrow Chief Executive Officer John Holland-Kaye commented: “2016 was a milestone year for Heathrow. I am very proud of what our 76,000 colleagues have achieved. We gave better service at lower cost to a record number of passengers and helped British businesses across the country trade more with the rest of the world.
“We have started the planning process for expansion and are preparing the skills and the supply chain we will need to build it sustainably and affordably. Heathrow is delivering for Britain.”