London Heathrow Airport Forecasts £2bn Profit This Year

dailyblitz.de 6 hours ago

LONDON– Heathrow Airport (LHR), the primary hub for British Airways (BA), has raised its 2025 profit forecast to £1.98 billion despite facing higher costs due to the recent UK National Insurance hike.

The projection comes as Heathrow handles stronger-than-expected travel demand and maintains its position as Europe’s busiest airport, with anticipated passenger traffic of 84.2 million this year.

Heathrow Forecast £2bn Profit

Heathrow Airport revised its earnings guidance upward, projecting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of £1.98 billion in 2025, up from £1.95 billion forecasted in December.

However, this represents a 3% year-on-year decline due to mounting operational expenses, flagged by This is Money UK.

Among the key cost drivers is the increase in employers’ National Insurance contributions. Implemented in April 2025, the rate rose from 13.8% to 15% on annual salaries above £5,000.

This policy change, introduced by UK Chancellor Rachel Reeves, has drawn criticism from business leaders, who warn it could lead to reduced margins and job cuts. In Heathrow’s case, the financial impact is compounded by new security mandates and contractual service expenses.

Despite the pressure, the airport’s performance is being buoyed by resilient international travel demand. Passenger volume is now forecasted at 84.2 million, a slight increase over the 83.9 million travelers in 2024.

Between January and May 2025, Heathrow processed 32.6 million passengers, boosted by long-haul travel demand across Latin America, the Middle East, and the Asia-Pacific regions.

Strong Passenger Footfall

Heathrow Airport (LHR) welcomed over 7.2 million passengers in May 2025, marking its busiest May on record. Driven by strong demand and a late bank holiday boost, the UK’s hub continues to see growing passenger volumes.

Key growth markets included flights to New York JFK (JFK) and Dubai (DXB), as well as robust demand to Mediterranean destinations and special event-driven traffic to Bilbao (BIO).

Dubai (DXB) ranked second in traffic volume, while destinations in Portugal, Spain, Italy, Greece, and Cyprus all saw double-digit growth.

Additionally, event-driven travel peaked during the Europa League final between Manchester United and Tottenham, which spurred 16 flights between London and Bilbao (BIO) across two days, twice the average.

Despite capacity constraints, Heathrow’s operational performance remained strong. More than 95% of surveyed passengers rated their airport experience as good or excellent. Security processing was particularly efficient, with 99% of travelers clearing queues in under five minutes.

Thomas Woldbye, CEO of Heathrow Airport, emphasized the need for future expansion despite the airport’s recent performance improvements. He noted that the hub has successfully handled increasing volumes without sacrificing service quality.

However, he stressed that Heathrow is operating at full capacity, limiting its ability to accommodate further growth without infrastructure development.

Cargo Growth and Operational Excellence

Heathrow has also recorded a 16% year-on-year rise in cargo tonnage, with North American volumes increasing ahead of new tariffs. This growth offset a decline in European freight activity and underscores the airport’s role in global trade logistics.

Operationally, Heathrow reported leading punctuality among European hubs, citing that 98.4% of passengers cleared Central Search Areas in under five minutes. CEO Thomas Woldbye emphasized Heathrow’s commitment to service efficiency, noting the airport’s investments of over £1 billion in infrastructure improvements this year.

Woldbye added that Heathrow’s airport charges remain aligned with other European hubs on a like-for-like basis, enhancing its competitive stance while maintaining customer value.

On March 21, 2025, Heathrow experienced a partial shutdown due to a fire at a nearby power substation, affecting around 270,000 journeys.

A subsequent review led by former Transport Secretary Ruth Kelly commended the airport’s crisis response and recommended 28 safety and infrastructure improvements—all of which Heathrow has pledged to implement.