Heathrow stays in the red despite passenger surge

Heathrow posted a first-quarter loss on Wednesday, despite seeing passenger numbers take off.

The airport - Europe’s busiest - said revenues in the three months to 31 March were £814m, a 58% jump on the same period a year previously, while passenger numbers surged 74% to 16.9m.

But it remained in the red, with adjusted losses before interest, tax, depreciation and amortisation of £139m, compared to £223m a year previously. Pre-tax losses narrowed to £60m from £191m, and Heathrow said it did not expect to pay any dividends in the current year.

The Civil Aviation Authority caps the price Heathrow can charge airlines for using its facilities, but the airport said the current settlement was too low. The average maximum per-passenger fee is £31.57, but that will drop to £25.43 next year.

Heathrow, which is appealing the settlement to the Competition and Markets Authority, noted: "There are a number of areas in which the CAA has made clear errors, which will undermine the investment needed to deliver the airport service and resilience consumers want."

John Holland-Kaye, chief executive, said: "2023 has got off to a strong start. We are building our route network to connect all of Britain to the growing markets of the work; now we need the government the lure international visitors back to the UK by scrapping the tourist tax."

The government scrapped tax-free shopping for tourists in 2020.

Heathrow is owned by a consortium of investors including Spanish infrastructure fund Ferrovial, the Qatar Investment Authority and China Investment Corporation.