Heathrow reports strong start to 2025

Image courtesy Heathrow

With nine new routes launching for summer 2025, 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. Punctuality at Heathrow 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 five minutes at security.

Heathrow’s future business plan aims to deliver tangible benefits for customers. Following extensive engagement with its airline partners to shape its H8 business plan over 2027 to 2031, the plan will outline the outcomes that customers can expect, 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).

Work continues towards the submission of Heathrow’s proposal for increasing its capacity to Ministers by the summer. Its plans would be entirely privately funded and have the potential to drive economic growth across the whole of the UK from construction through to operation. Depending on the Government’s response, Heathrow would aim to meet their ambition to secure planning permission in this Parliament and for the runway to be operational by 2035.

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.

The performance outlook for 2025 remains consistent with the forecasts published in Heathrow’s Investor Report on 13th December 2024, with the airport expecting overall passenger demand in 2025 to exceed 2024.

Heathrow CFO Sally Ding said: “Twenty twenty-five 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.”