Passengers using Heathrow are forecast to exceed 70 million in a single year for the first time in 2011.
Parent company BAA, giving an updated investor report today, said passenger traffic is expected to rise by 3.7% to 88 million across its airports.
This will be driven by a continuation of the recent strong performance at Heathrow which is forecast to exceed 70 million passengers in a year for the first time in its history.
Revenue at the airports operator is expected to grow by 10.7% to £2,297 million reflecting primarily increased passenger numbers and aeronautical tariffs supported by further growth in retail income per passenger.
Adjusted earnings before interest, tax, depreciation and amortisation and exceptional items (EBITDA) growth of 15.2% to £1,120 million is predicted with the increasing cash flow helping to finance Heathrow’s “significant” investment programme.
More than £1 billion is to be spent at Heathrow in 2011, reflecting “particularly accelerating activity” on construction of the new Terminal 2.
“This programme is the biggest private development in the country which will support the UK economy with thousands of high calibre jobs as the pressure on public sector spending increases,” BAA said.
The company added that its recent financial performance has continued the “robust trends” reported at the time of its 2010 third quarter results.
As a result, it is now expected that adjusted EBITDA for the year ending December 31 will top the £972 million figure in its most recent forecast. This was above the original budget adjusted EBITDA for the year of £956 million.
“The recent strong performance is expected to continue in 2011,” BAA said.