Q3 2025 Trading Statement

Heathrow

22 October 2025

 

HEATHROW (SP) LIMITED

TRADING STATEMENT FOR THE 9 MONTHS

ENDED 30 SEPTEMBER 2025

"This is a great time for Heathrow customers - with more people than ever flying from the airport, we are proud to be Europe's most punctual hub and the best-connected airport in the world. We already invest over £1bn every year to improve the airport and we have exciting plans to increase that investment to deliver the modern, upgraded facilities customers want. We are also working to unlock a third runway which can be operational within a decade, giving customers more value and choice and securing economic growth across the whole country for decades to come. Ministers now need to move forward to unlock this 100% privately financed investment and get Britain growing."                                                   Sally Ding | Heathrow CFO

Most punctual hub in Europe underpins strong passenger service - Heathrow delivered the best on-time performance in Q3 with fewer cancellations, beating all European hubs to become Europe's most punctual major airport⁽¹⁾. Passenger appetite to travel through Heathrow is stronger than ever, with a record 23.4 million in Q3, and for the first time ever for a European airport⁽¹⁾, Heathrow welcomed over 8 million passengers in August alone. Our investment in security checkpoints is also yielding results, with over 97% of passengers waiting less than 5 minutes.

Most connected airport for the third-year running - In summer 2025, we launched nine new routes, with two more to follow this winter. Three new airlines - Riyadh Air, Air Peace, and IndiGo - will also begin operations from Heathrow, offering passengers even greater choice and supporting the UK's economic growth. Cargo volumes through Heathrow have risen by 2%, and regions and nations across the UK now have direct access to 92% of the global economy.

On track to deliver over £1bn of investments for customers - Heathrow has invested £901 million so far this year to enhance passenger experience and resilience. One of these projects includes an upgrade to the passenger transit system in Terminal 5 - adding a further six new vehicles to the fleet and a new track layout which will increase capacity whilst reducing waiting times for passengers.

Improving Heathrow and unlocking new capacity - Our H8 investment plan will modernise and upgrade the existing airport between 2027 - 2031 with more investment in the changes customers want to see. The plan is being considered by the Civil Aviation Authority (CAA) and will be delivered with stretching efficiency targets and an average airport charge that is lower in real terms than it was a decade ago. Longer term, we are progressing our plans to deliver a third runway.  Ministers are clear that they expect planning permission to be secured by 2029 and the third runway to be operational within a decade. We are engaging with the CAA on its initial proposals for costs associated with securing planning permission and will respond to the CAA's autumn consultation on potential changes to the regulatory framework that will facilitate the timely delivery of the project. 

Connecting People and Planet - Q3 saw us take practical steps towards our Net Zero plan. A new pre-conditioned air system at Terminal 5C came online at 11 stands, improving air quality and reducing carbon on-stand. We also provided evidence to support the SAF Bill's progress in Parliament to help scale domestic SAF production. We upgraded our 'Carbon Management Standard', setting clearer requirements for improving data and managing emissions across capital projects and supply chain partners. As reported in our 2024 footprint, our supply chain emissions are above the 2019 baseline. In Q3, we commissioned a major study to better understand the drivers of this underperformance and opportunities to course correct.

Solid financial performance - In the first nine months of 2025, revenue rose 2.0% to £2,703 million, driven by strong long-haul flying, increased uptake of premium services, and favourable property performance. These gains partially offset ongoing headwinds, such as the loss of VAT-free shopping. Adjusted operating costs rose by 5.0% to £1,170 million, mainly due to increased security compliance during operational transitions, higher contractual costs linked to National Insurance and maintenance costs to support operational performance. As a result, adjusted EBITDA declined slightly by 0.2% to
£1,533 million.

Outlook - The performance outlook for 2025 remains consistent with our June 2025 Investor Report. We expect overall passenger demand in 2025 to exceed 2024.

Traffic performance indicators (2)	2025	2024	Var (%)
Passenger traffic (millions)	63.3	63.1	0.3
Passenger ATM	356,298	354,097	0.6
Seat factor (%)	80.2	80.7	(0.6)
Seats per ATM	221.4	220.6	0.4
Cargo tonnage ('000) (3)	1,174	1,153	1.8
Service standard performance indicators (2)	2025	2024
ASQ	4.05	3.99
Arrival punctuality (%)	79.7	66.8
Departure punctuality (%)	78.2	67.8
Security performance (%)	97.2	91.9
Baggage connection (%)	98.8	98.3
As at or for the 9 months ended 30 September	2025	2024	Var (%)
(£m unless otherwise stated)
Total revenue	2,703	2,650	2.0
Aeronautical	1,685	1,670	0.9
Retail	588	572	2.8
Other	430	408	5.4
Adjusted operating costs (4)	1,170	1,114	5.0
Employment	345	347	(0.6)
Operational	349	321	8.7
Maintenance	192	172	11.6
Rates	89	87	2.3
Utilities and Other	195	187	4.3
Adjusted EBITDA(5)	1,533	1,536	(0.2)
Adjusted profit before tax(6)	217	350	(38.0)
Heathrow (SP) Limited consolidated nominal net debt(7)	15,584	14,698	6.0
Heathrow Finance plc consolidated nominal net debt(7)	17,189	16,630	3.4
Regulatory Asset Base(8)	21,132	20,422	3.5
Heathrow SP's senior regulatory asset ratio (Class A) (9)	62.9%	61.8%	1.1
Heathrow SP's junior regulatory asset ratio (Class B) (9)	73.7%	72.0%	1.7
Heathrow Finance's regulatory asset ratio (9)	81.3%	81.4%	(0.1)
Qualifying cash and cash equivalents and term deposits (9) (10)	1,487	1,557	(4.5)

Notes

(1) vs. European Union hubs.

For the three months ended 30 September.

(2) For the nine months ended 30 September.

(3) Cargo tonnage includes mail volumes.

(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, 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. 2024 figures are as at 31 December 2024.

(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. 2024 figures are as at 31 December 2024.

(9) 2024 figures are as at 31 December 2024

(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 £2.0 billion in cash resources across the Heathrow Finance Group and undrawn revolving credit facilities and committed borrowings of £1.5 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 2024.

Investor enquiries  Christelle Lubin [phone]

Media enquiries Weston Macklem [phone]

 

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