Heathrow narrows annual losses as travel recovery continues
By Michele Maatouk
Date: Thursday 23 Feb 2023
(Sharecast News) - Heathrow reported a narrowing of its annual losses on Thursday as it continued to recover from the impact of the pandemic.
In the year to the end of December 2022, adjusted pre-tax losses narrowed to £684m from £1.27bn the year before, as passenger numbers trebled to 62 million. Still, that was 25% lower than in 2019, before the pandemic.
Heathrow noted that borders reopened in March after two years of closures "which were tougher in the UK than in other major markets".
"This increase alone was equivalent to fitting virtually all of Frankfurt's 2022 passengers into Heathrow," it said.
No dividends were paid in 2022 and Heathrow said it has no plans to pay any for 2023.
Chief executive John Holland-Kaye said: "2022 may have been a year of recovery, but 2023 is shaping up to be a year of renewal for Heathrow. Our teams have already delivered a successful Christmas and half-term getaway, and with a great investment plan in place, we are determined to once again rank in the top 10 airports for service."
Victoria Scholar, head of investment at Interactive Investor, said: "Last year's removal of Covid restrictions helped spur a recovery for Heathrow after the extremely difficult pandemic era when most flights were ground to a halt. However 2022 posed challenges of its own with labour shortages prompting the implementation of limits on passenger capacity between July and October.
"Strikes, baggage handling problems and cancellations, China's lockdowns as well as the long-term structural decline in business travel have created headwinds for Heathrow. Plus there is the macroeconomic backdrop to contend with which has resulted in slower growth, a softening consumer and inflated costs. Nonetheless Heathrow said service is getting back to pre-pandemic levels after a successful Christmas and half term, describing 2023 as the 'year of renewal'."
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