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Heathrow Calls for Expansion After Profits Fall

Heathrow Calls for Expansion After Profits Fall

On Monday Heathrow announced its full year results outlining a 10 per cent fall in profits. The west London airport used this announcement to push for plans to allow it to expand before passengers are lost to airports such as Paris. It said that in 2014 it served 73.4 million passengers, a growth of 1.4 per cent however there was no real growth in the number of flights. They said that this is because the hub airport is ‘full’. Heathrow is battling with Gatwick for expansion to become a modern hub airport and to become this it needs a third runway. The Airport Commission is due to publish its recommendations for expansion following the general election.

Revenues had climbed to £2.69 billion however its operating profit fell by 10 per cent to £839 million. Depreciation costs associated with Terminal Two were part of the reason for the fall in profits. The investment in Terminal Two have however led to a rise in customer service scores making them the best airport in Europe, overtaking Schiphol airport for the first time. A statement from Heathrow said – “With Heathrow full, Britain is falling behind in direct flights to growth markets – that’s why calls for Heathrow expansion are growing from all parts of the UK.”

 

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