Q3 2026 Trading Statement
Summary by AI BETAClose X
HEATHROW (SP) LIMITED
TRADING STATEMENT FOR THE 9 MONTHS
ENDED 30 SEPTEMBER 2026
Strong operational performance and stable passenger demand - Heathrow delivered a strong operational performance during a busy summer and retains its position as Europe's most punctual hub airport. As the busiest two runway airport in the world, Heathrow continues to maximise the use of existing infrastructure and topped previous records with the busiest day ever on the 2nd of August, serving 272,000 passengers. Cargo volumes continue to grow, reinforcing Heathrow's unique role as the UK's most valuable port. Our passenger outlook remains consistent with our June 2026 Investor Report.
Competitor hub growth highlights the need for additional capacity - Heathrow rounds out the summer 2026 season serving over 100 long haul routes, including 68 routes that are unique to the UK. However, with Heathrow full and unable to serve the 40 airlines queueing to join or secure more slots, the airport lost its crown as the most connected airport in the world to Istanbul, as other countries invest in their hub airport connectivity.
Heathrow welcomes growing momentum behind expansion - Speaking before the Transport Select Committee, Heathrow's CEO, Thomas Woldbye highlighted that expansion will drive "jobs, innovation, trade and investment" unlocking 108,000 jobs and 5,000 apprenticeships, £17 billion added to the economy per year by 2050 and the opportunity to add £150 billion of trade annually through the UK's hub. Leaders across business, trade unions, regional airports and politics are united, recognising the opportunities expansion will deliver for the whole of the UK. Heathrow's consultation opens next week where local people will be invited to learn more and have their say on the airport's expansion plans.
Creating nationwide opportunities through Heathrow's supply chain - Heathrow is laying strong foundations to ensure expansion has a lasting legacy in every nation and region of the UK. Recent agreements with Welsh steel supplier 7Steel, alongside the second regional business summit in Liverpool, are supporting businesses across the country to take up the opportunity to become part of Heathrow's 98% UK-wide supply chain.
CAA's proposals need to deliver for passengers - As the CAA develops the future regulatory framework, early certainty remains essential to unlock the private investment needed to expand Heathrow and deliver growth across the UK. An investable, stable and financeable regime that provides a fair return for investors will be critical to maintaining customer service, resilience and the infrastructure required for the country's hub airport.
Resilient financial performance - Heathrow's financial performance in the first nine months of 2026 remained robust in the face of continued geopolitical uncertainty in the Middle East, underlining the strength of the hub model. This combined with strong operational performance and passengers rating the airport amongst the best in the world, enabled Heathrow's Board to approve a £200 million dividend to external shareholders, that was paid in October 2026. EBITDA was impacted by lower revenue from decreasing airport charges and higher operating costs due to higher business rates, National Insurance contributions and increased investment in technology.
|
|
Traffic performance indicators (1) |
2026 |
2025 |
Var (%) (2) |
|
Passenger traffic (millions) |
62.9 |
63.3 |
(0.6) |
|
Passenger ATM ('000) |
349.8 |
356.3 |
(1.8) |
|
Seat factor (%) |
81.1 |
80.2 |
1.1 |
|
Seats per ATM |
221.7 |
221.4 |
0.1 |
|
Cargo tonnage ('000) (3) |
1,193 |
1,174 |
1.6 |
|
Service standard performance indicators (1) |
2026 |
2025 |
|
|
ASQ |
4.10 |
4.05 |
|
|
Arrival punctuality (%) |
78.4 |
79.7 |
|
|
Departure punctuality (%) |
78.1 |
78.2 |
|
|
Security performance (%) |
98.5 |
97.2 |
|
|
Baggage connection (%) |
98.4 |
98.8 |
|
|
|
|||
|
As at or for the 9 months ended 30 September |
2026 |
2025 |
Var (%) |
|
(£m unless otherwise stated) |
|
|
|
|
Total revenue |
2,684 |
2,703 |
(0.7) |
|
Aeronautical |
1,620 |
1,685 |
(3.9) |
|
Retail |
592 |
588 |
0.7 |
|
Other |
472 |
430 |
9.8 |
|
Adjusted operating costs (4) |
1,243 |
1,170 |
6.2 |
|
Employment |
360 |
345 |
4.3 |
|
Operational |
385 |
349 |
10.3 |
|
Maintenance |
198 |
192 |
3.1 |
|
Rates |
110 |
89 |
23.6 |
|
Utilities and Other |
190 |
195 |
(2.6) |
|
Adjusted EBITDA (5) |
1,441 |
1,533 |
(6.0) |
|
Adjusted profit before tax (6) |
177 |
217 |
(18.4) |
|
Heathrow (SP) Limited consolidated nominal net debt (7) |
16,459 |
15,706 |
4.8 |
|
Heathrow Finance plc consolidated nominal net debt (7) |
18,163 |
17,622 |
3.1 |
|
Regulatory Asset Base (8) |
21,956 |
21,263 |
3.3 |
|
Heathrow SP's senior regulatory asset ratio (Class A) (9) |
63.3% |
63.1% |
0.2 |
|
Heathrow SP's junior regulatory asset ratio (Class B) (9) |
75.0% |
73.9% |
1.1 |
|
Heathrow Finance's regulatory asset ratio (9) |
82.7% |
82.9% |
(0.2) |
|
Qualifying cash and cash equivalents and term deposits (9) (10) |
1,849 |
1,117 |
65.5 |
Notes
(1) For the nine months ended 30 September.
(2) Calculated using unrounded figures.
(3) Cargo tonnage includes mail volumes and is only for ATMs.
(4) Adjusted operating costs exclude depreciation, amortisation, fair value gains and losses on investment properties and exceptional items (if any).
(5) Adjusted EBITDA is profit before interest (net finance costs), taxation, depreciation, amortisation, fair value gains and losses on investment properties and exceptional items (if any).
(6) Adjusted profit before tax excludes fair value gains and losses on investment properties and financial instruments, and exceptional items (if any).
(7) Consolidated nominal net debt is short and long-term debt less cash and cash equivalents and term deposits. It includes index-linked swap accretion and the hedging impact of cross-currency interest rate swaps. It excludes pre-existing lease liabilities recognised upon transition to IFRS 16, accrued interest, bond issue costs and intra-group loans. 2025 figures are as at 31 December 2025.
(8) The Regulatory Asset Base ('RAB') is a regulatory construct, based on predetermined principles not based on IFRS. It effectively represents the invested capital uplifted by inflation on which we are authorised to earn a cash return. 2025 figures are as at 31 December 2025.
(9) 2025 figures are as at 31 December 2025.
(10) The Group's liquidity horizon is within our target range of 18 to 24 months. This assessment considers operating cashflows, capital investment, debt service costs, debt maturities, repayments and dividends, along with £2.5 billion in cash resources across the Heathrow Finance Group and undrawn revolving credit facilities and committed borrowings of £1.4 billion.
Heathrow (SP) Limited is the holding company of a group of companies that fully own Heathrow airport and together with its subsidiaries is referred to as the Group. Heathrow Finance plc, also referred to as Heathrow Finance, is the parent company of Heathrow (SP) Limited.
Disclaimer
These materials contain certain statements regarding the financial condition, results of operations, business and future prospects of Heathrow. All statements, other than statements of historical fact are, or may be deemed to be, "forward-looking statements". These forward-looking statements are statements of future expectations and include, among other things, projections, forecasts, estimates of income, yield and return, pricing, industry growth, other trend projections and future performance targets. These forward-looking statements are based upon management's current assumptions (not all of which are stated), expectations and beliefs and, by their nature are subject to a number of known and unknown risks and uncertainties which may cause the actual results, prospects, events and developments of Heathrow to differ materially from those assumed, expressed or implied by these forward-looking statements. Future events are difficult to predict and are beyond Heathrow's control, accordingly, these forward-looking statements are not guarantees of future performance. Therefore, there can be no assurance that estimated returns or projections will be realised, that forward-looking statements will materialise or that actual returns or results will not be materially lower than those presented.
All forward-looking statements are based on information available at the date of this document. Accordingly, except as required by any applicable law or regulation, Heathrow and its advisers expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained in these materials to reflect any changes in events, conditions or circumstances on which any such statement is based and any changes in Heathrow's assumptions, expectations and beliefs.
These materials contain certain information which has been prepared in reliance on publicly available information (the "Public Information"). Numerous assumptions may have been used in preparing the Public Information, which may or may not be reflected herein. Actual events may differ from those assumed and changes to any assumptions may have a material impact on the position or results shown by the Public Information. As such, no assurance can be given as to the Public Information's accuracy, appropriateness or completeness in any particular context, or as to whether the Public Information and/or the assumptions upon which it is based reflect present market conditions or future market performance. The Public Information should not be construed as either projections or predictions nor should any information herein be relied upon as legal, tax, financial, investment or accounting advice. Heathrow does not make any representation or warranty as to the accuracy or completeness of the Public Information.
All information in these materials is the property of Heathrow and may not be reproduced or recorded without the prior written permission of Heathrow. Nothing in these materials constitutes or shall be deemed to constitute an offer or solicitation to buy or sell or to otherwise deal in any securities, or any interest in any securities, and nothing herein should be construed as a recommendation or advice to invest in any securities.
This document has been sent to you in electronic form. You are reminded that documents transmitted via this medium may be altered or changed during the process of electronic transmission and consequently neither Heathrow nor any person who controls it (nor any director, officer, employee nor agent of it or affiliate or adviser of such person) accepts any liability or responsibility whatsoever in respect of the difference between the document sent to you in electronic format and the hard copy version available to you upon request from Heathrow.
Any reference to "Heathrow" means Heathrow (SP) Limited (a company registered in England and Wales, with company number 06458621) and will include its parent company, subsidiaries and subsidiary undertakings from time to time, and their respective directors, representatives or employees and/or any persons connected with them.
These materials must be read in conjunction with the Heathrow (SP) Limited annual report and financial statements for the year ended 31 December 2025.
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