Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Heathrow airport plans to pay its owners a dividend for the first time since the pandemic, as it reported record passenger numbers ahead of a new tilt at building a third runway.
The airport said on Wednesday that it would pay a dividend of £250mn to its shareholders in the coming weeks — its first payout since February 2020, just before the pandemic struck.
Passenger numbers at the UK’s only hub airport increased 6 per cent to 83.9mn in 2024, and pre-tax profits rose by 31 per cent to £917mn.
With its two runways operating close to capacity, Heathrow said it hoped “larger and fuller planes” would allow for more growth this year, but warned that “constrained capacity” would likely result in a “smaller uptick in annual performance”.
Its group of international investor owners include French private equity group Ardian and the sovereign wealth funds of Saudi Arabia and Qatar.
Heathrow is pushing ahead with plans to build a third runway after the government signalled its support for the controversial project earlier this year.
The airport has said it will provide a detailed proposal to the government by the summer, and would aim to submit a formal planning application by the end of this parliament in 2029.
It has also outlined plans to improve and extend its existing infrastructure to allow passenger numbers to increase from 85mn to 100mn, regardless of whether a third runway is built.
“Securing future economic growth means investing in the infrastructure that powers it,” chief executive Thomas Woldbye.
But Heathrow is already facing significant opposition from major airlines, which have warned the airport should not raise its landing charges in order to fund the megaproject.
Under the current regulatory model, Heathrow is allowed to recoup spending on airport improvements through the landing fees it charges airlines, which are typically passed on to customers through ticket prices.
Sir Tim Clark, head of Emirates Airline, this week told the Financial Times that Heathrow could face a legal challenge if charges rise significantly. The current landing fee is an average of £25 per passenger.
The project to significantly expand the airport has also sparked concern from environmental groups, which argue a huge increase in flying is incompatible with cutting emissions to reach net zero by 2050.
Still, ministers have swung behind airport expansion in a bid to boost economic growth.
Transport secretary Heidi Alexander is poised to approve London Gatwick Airport’s own expansion plan when she rules on the project this week.
Speaking on Tuesday evening at an industry event, she said the government would back airport expansion, subject to environmental safeguards.
“I have no intention of clipping anyone’s wings,” she said at the Airlines UK annual dinner. “I am not some sort of flight-shaming eco-warrior.”
