Gatwick Airport Ltd results for the six months ended 30 September 2014
20 November 2014
London Gatwick delivers mid-year results in line with expectations as a record-breaking year of performance and growth underlines the airport’s expansion credentials.
- Turnover up 8.6% to £391.6 million. Combined with carefully controlled cost management, this resulted in EBITDA up 12.7% to £221.6 million and a profit before tax of £122.4 million.
- Gatwick has seen the busiest six months in the airport’s history with 22.5 million passengers, an increase of 8.0% or 1.7 million passengers
- The period included one day of 906 air traffic movements in August – a world record for a single-runway airport achieved by increased operational efficiency
- Gatwick’s growth is a combination of more planes, bigger planes and fuller planes – load factors have increased to 86.1%
- Growth across a broad range of travel markets with long-haul traffic, European business routes and emerging markets combining to fuel a record-breaking year
- Several airlines have increased frequencies on European routes and introduced new destinations, underlining that Europe will continue to be the most dominant market for London airports
- A series of new European business routes have been added including Strasbourg, Brussels and Paris
- Strong growth in business travel - 1 in 5 passengers are now travelling on business and Gatwick now serves 46 of the top 50 EU business destinations.
- Norwegian’s ground-breaking new low cost services to USA have been a catalyst for long haul growth, contributing to a 4.8% increase on North American routes
- Other key areas of long haul growth include the Middle East with increased capacity on existing routes such as Dubai and new services to Israel
- New and existing routes to emerging markets have also fed into overall long-haul growth including Vietnam, Turkey, Russia and Indonesia
- Lighter regulation endorsed by the CAA is now in place using Gatwick’s industry-leading ‘Commitments and Contracts’ framework – this has allowed Gatwick to enter into commercial bilateral agreements with all of its major airlines
- Gatwick’s £1 billion investment programme continues with £90.5 million pounds invested over the last 6 months.
- Major improvements to North and South Terminal departure lounges and retail facilities have contributed to a 4.5% increase in income per passenger to £3.71.
Stewart Wingate, CEO of London Gatwick, said:
“Gatwick’s record-breaking year is testament to the significant investment made in improving the airport for passengers, and the benefits of greater competition in the London market.
“Nearly five years of independent ownership have seen growth of five million more passengers and we are attracting new routes across the board - from low cost carriers and European business travel, to long haul providers and emerging markets.
“There is huge momentum behind the airport, both in passenger growth and the increasing recognition that Gatwick is the most credible, deliverable choice for the UK’s next runway. But time is not on our side. Gatwick’s success and continued rate of growth means we are now unable to meet demand across much of the year and are just a few years away from hitting full capacity, ahead of earlier forecasts.
“The capacity crunch facing Gatwick underlines the urgent need for a new runway. This time next year we will know which airport is chosen for expansion. Gatwick offers the compelling, credible option of a new runway that can actually be built, compared to an undeliverable Heathrow scheme and the threat of another report on airport expansion simply sitting on the shelf.”