Heathrow Earnings Rise 22 Pct On Higher Asia, Middle East Traffic

by
Reuters
British airport operator Heathrow Ltd reported a 22.1 percent rise in earnings on Monday, boosted by higher passenger traffic to Asia and the Middle East.

Heathrow Earnings Rise 22 Pct On Higher Asia, Middle East Traffic

British airport operator Heathrow Ltd reported a 22.1 percent rise in earnings on Monday, boosted by higher passenger traffic to Asia and the Middle East.

The owner of Heathrow, Southampton, Glasgow and Aberdeen airports said adjusted earnings before interest, tax, depreciation and appreciation (EBITDA) rose to 1.035 billion pounds ($1.68 billion) for the nine months to Sept. 30, from 848 million pounds in the same period in 2012.

"Strong passenger satisfaction and passenger numbers have driven strong growth in cash flows, funding current investment of almost 4 million pounds a day in improving the airport for passengers and airlines," Chief Executive Colin Matthews said.

Heathrow, majority-owned by Spanish infrastructure group Ferrovial, said the number of passengers passing through its airports rose 3.6 percent to 54.8 million over the period, while net retail income per passenger increased 2.6 percent to 6.18 pounds.

There was no repeat of last year's summer dip in demand for short-haul flights to Europe during the London Olympics, it said.

The company said it was reconsidering its investment plans following a proposal by Britain's aviation regulator to cap the prices charged by London's Heathrow airport - the country's busiest - as it would reduce returns to below the level at which shareholders were willing to invest.