Heathrow to pay dividend as profit, passenger numbers soar

(Sharecast News) - London's Heathrow airport on Wednesday reported a surge in annual profit, record passenger numbers and declared a dividend for the first time since the Covid-19 pandemic. Pre-tax profit at the west London airport surged by 31% to £917m last year, with a 6% year-on-year rise in passengers to 83.9 million. Shareholders will share a £250m dividend.

Revenues fell 3.5% to £3.56bn and underlying earnings were 8.7% lower at £2.04bn. Heathrow cited lower charges paid by airlines, set by regulator the Civil Aviation Authority, for the declines.

The results come after the government resurrected plans for a third runway at the airport, despite fierce opposition to the proposal in the past that saw it shelved.

Heathrow chief executive Thomas Woldbye said securing future economic growth "means investing in the infrastructure that powers it".

He added that the airport would make "the largest private investment in the UK's transport network" over the next 10 years to create "a competitive world-class hub fit for the future".

In December 2024, French company Ardian completed a deal to become Heathrow's largest shareholder with a 23% stake, while Saudi Arabia's sovereign wealth fund purchased a 15% share after Spain's Ferrovial - which had been the airport's largest shareholder since 2006 - sold the majority of its 25% stake, and sales by other shareholders.

Heathrow's other owners include sovereign wealth funds from Qatar and China, and large infrastructure funds.

Reporting by Frank Prenesti for Sharecast.com