Heathrow is on the brink of returning to the black after three years of huge losses during the pandemic as passengers flock back to the airport more quickly than expected.
Losses were down to just £19million in the first nine months of the year, compared with a £442million deficit in the same period last year.
The west London hub accumulated total losses of around £4.5billion between 2020 and 2022 as Covid-related travel bans and restrictions sent passenger volumes crashing by as much as 90%.
Chief financial officer Javier Echave said he expected the airport to be “pretty close” to break-even when the full year results for 2023 are unveiled in February. However, there will be no dividend for this year.
He added that the climb back to profitability has been hampered by the settlement on airport charges set by its regulator the Civil Aviation Authority.
The CAA ordered Heathrow to cut its charges by 20% next year in a ruling that has been broadly upheld on appeal by the Competition and Markets Authority.
Echave said: “Our losses are uncapped but our profits are capped, unlike the airlines, because we are regulated.”
The airport also upgraded its forecasts for the number of passengers expected to arrive or depart this year. It had previously projected 70 to 78 million but today finessed the figure to 79.3 million, only just below the 80.9 million record of 2019.
Passenger traffic next year is expected to be “in line” with 2019. Echave said the airport served 29 million passengers over the summer, when growth was twice as fast as that seen at rival European hubs.
Heathrow also claimed to have reclaimed its crown as “the most connected airport in the world” with routes to 214 destinations, and flights to Peru and Turkmenistan launching this winter season.
A shift in the mix of routes to more long-haul destinations means the number of seats available on planes using Heathrow is already 4% ahead of 2019.
New CEO Thomas Woldbye said: “Heathrow is already a great national asset for Britain — and our best days still lie ahead.”
