UK. London Heathrow Airport posted a solid commercial performance in Q1 2018, with retail revenue per passenger climbing by +2.3% year-on-year to £8.82. Total retail revenue rose by +5.4% to £156 million.
Retail revenue growth, led by retail concessions and catering, reflected a strong traffic performance and higher participation among consumers, noted the company. F&B also saw benefit from the redevelopment of Terminal 5 catering outlets.
Other revenue rose primarily driven by other regulated charges and property rents, higher consumption of utilities, the new Qantas Lounge and the independent Plaza Premium.
Passenger traffic climbed by +3.1% to 17.7 million. Intercontinental traffic was the key geographic driver increasing +3.5%, with notable growth in Asia Pacific on routes serving Mumbai, Tokyo and Guangzhou. Middle Eastern traffic remained healthy, in particular on routes to Saudi Arabia and Israel. European traffic saw good growth on routes to Madrid, Barcelona and Istanbul.
Total revenue was up +3.8% to £680 million, driven by a strong traffic performance and the momentum behind retail income growth. Adjusted EBITDA grew +5.2% to £402 million as a result of traffic growth, cost control and the retail performance.
Hethrow CEO John Holland-Kaye said: “We’re delighted that passengers are choosing Heathrow in record numbers – it’s is a strong signal that we’re delivering value for money. We’re within touching distance of Parliament voting on expanding Heathrow and now more than ever we’re committed to developing and delivering a hub airport that Britain can be proud of for generations to come.”
