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Heathrow warning over CAA price controls as numbers rise

Heathrow’s development is under jeopardy due to planned new Civil Aviation Authority charging plans.

The warning came from the airport’s boss as it recorded a 3.6% rise in passenger numbers to 54.8 million in the first nine months of the year.

Adjusted EBITDA was up by more than 22% to over £1 billion in the period with pre-tax profit more than doubling to £266 million.

Heathrow is to make a formal response to the CAA’s next price regulation plans (Q6) by November 4. The new regime is due to come into force from next April.

Chief executive Colin Matthews said today: “Strong passenger satisfaction and passenger numbers have driven strong growth in cash flows, funding current investment of almost £4 million a day in improving the airport for passengers and airlines.

“But progress is jeopardised by the CAA’s final proposals for Q6, which reduce returns to below the level at which Heathrow’s shareholders have said they are willing to invest.

“We are now carefully considering our investment plans before responding to the CAA.”


 

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