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Heathrow has reported a rise in profit despite the power outage that caused its unprecedented closure last month, showing how the airport has so far avoided a direct financial hit from the disruption.
The UK’s biggest airport closed on March 21 after a large fire at a nearby electricity substation caused a power cut in the local area, leading to the cancellation of more than 1,300 flights. Heathrow did not fully reopen for more than 24 hours.
But on Wednesday, Heathrow reported a “robust” financial performance in the first quarter, including a rise in profits and revenue.
The airport is not contractually liable to pay compensation to airlines for the disruption caused by the fire. But its chief executive Thomas Woldbye told the Financial Times last month that the airport would consider paying compensation, once there were more details on “exactly what happened”.
Airlines have criticised Heathrow for its lack of resilience, and British Airways owner International Airlines Group has said it estimates the disruption will cost its business “tens of millions” of pounds.
Reviews into the disruption by both the government’s energy system operator and Heathrow itself are due to report their initial findings next month.
For the first three months of the year, Heathrow reported adjusted earnings before interest, taxes, depreciation and amortisation of £454mn, a rise of 2.5 per cent year on year. Revenue was up 2.1 per cent at £825mn, which the airport said was driven by more long-haul flying, and higher property and retail income.
The airport added that demand for flying “remains strong”, and that it expects passenger numbers for 2025 to exceed last year’s record of 83.9mn.
“Passenger demand in the first quarter of 2025 remained level with last year’s record performance, despite the busy Easter holidays falling in [the second quarter] this year and the leap year in 2024,” the airport said.
Heathrow is preparing a detailed proposal for a third runway to present to the government by the summer, after chancellor Rachel Reeves threw the government’s weight behind airport expansion in an effort to boost economic growth earlier this year.
On Wednesday, the airport said “work continues at pace” on expansion, and it is aiming for a new runway to be operational by 2035, if it secures the necessary planning permission.
It added that a new runway would “improve operational resilience at the UK’s hub airport”.
