New routes and improving service drive strong start to 2025 - results for the three months ended 31 Mar 2025

Passenger demand remains strong – Passenger demand in the first quarter of 2025 remained level with last year’s record performance, despite the busy Easter holidays falling in Q2 this year and the leap year in 2024. The National Energy System Operator and Kelly Reviews into the North Hyde substation fire and response are due to report initial findings in May.

Delivering a good service safely remains our priority – Punctuality is now close to record highs with over 81% of flights leaving on-time, nearly 99% of bags travelling on their flights as expected and 97% of passengers waiting less than 5 minutes at security. We remain focussed on improving passenger experience, and we were proud to be recognised as the Best UK Airport by Travel Weekly for the fourth consecutive year. The first phase of our refreshed VIP service The Windsor also launched in Q1, providing guests with a dedicated discreet, luxurious and personalised service.

Growing range of destinations served this summer – Heathrow is the world’s most connected airport. Whether passengers are chasing sunshine, history, or adventure, nine new routes launching for summer 2025 will give them even more choice than ever when planning their next adventure. New long-haul connections include Cancun in Mexico, Ottawa in Canada and Kuala Lumpur in Malaysia, as well as new short-haul services to Rimini in Italy, Tbilisi in Georgia and Santiago de Compostela in Spain.

Future business plan will deliver tangible benefits for customers – We have undertaken extensive engagement with our airline partners to shape our H8 business plan over 2027 to 2031. The plan will outline the outcomes that customers can expect and provide value for our customers with the aim to submit the plan to the CAA this summer. The CAA published their final H8 methodology, reaffirming the importance of RAB-based regulation for Heathrow’s financeability and supporting many positions set out in Heathrow’s response. Alongside the method statement reflecting the UK Government’s support for Heathrow expansion, the CAA has issued a letter outlining their intention to set a separate review on the approach to costs of capacity growth (terminal and runway). The H8 timeline has been delayed, with the final decision now expected in April 2027 (after the start of the H8 period) and a 2027 holding cap to be based on CAA’s Initial Proposals (March 2026).

Unlocking new capacity at the UK’s gateway to growth – Work continues at pace towards the submission of our proposal to Ministers by the summer. Our plans would be entirely privately funded and have the potential to kickstart economic growth across the whole of the UK from construction through to operation. Depending on the Government’s response, we would aim to meet their ambition to secure planning permission in this Parliament and for the runway to be operational by 2035. New capacity would boost competition and choice for consumers, drive economic growth for the UK and improve operational resilience at the UK’s hub airport.

Robust Q1 EBITDA – In the first three months of 2025, the Group’s revenue increased by 2.1% to £825 million (2024: £808 million). The higher revenue was driven by more long-haul flying, and improved property and retail income.  Adjusted operating costs increased by 1.6% to £371 million (2024: £365 million) due to higher costs from PRM services, cleaning and maintenance. Utilities and other costs also increased on account of noise and vortex mitigating activities and inflation. These cost increases were partially offset by lower employment costs. Adjusted EBITDA increased 2.5% to £454 million (2024: £443 million). As a result of our strong operational and financial performance in 2024, on 7 March 2025 a payment of £250 million was made by FGP Topco Limited to our ultimate shareholders, marking our first dividend payment in five years.

Outlook – The performance outlook for 2025 remains consistent with the forecasts published in our Investor Report on 13 December 2024. We expect overall passenger demand in 2025 to exceed 2024.

Heathrow CFO Sally Ding said:

“2025 will be a pivotal year for Heathrow as we finalise our business plan for the next five years and submit our proposals to Government to unlock new capacity at the UK’s gateway to growth. Our focus on steadily improving operational performance is yielding results, and our future plans will enable us to deliver better value and more growth for our customers and the country.”