Heathrow today forecast that 2014 earnings will increase by 10.9% to £1.576 billion over last year.
However adjusted earnings in 2015 are expected to drop by 0.7% or £10 million to £1.565 billion.
This reduction mainly reflects the non-recurrence of £50 million revenue recovery in 2014 and the incremental cost of operating an additional terminal for the whole year, largely offset by underlying improvements, the London hub said in an investor report today.
Traffic is expected to grow 1% in 2015 to 73.9 million passengers, driving underlying revenue growth together with a rise in non-aeronautical revenue.
Heathrow expects to invest nearly £700 million and around £580 million in 2014 and 2015 respectively on projects to sustain and improve the passenger experience together with maintenance and compliance projects.
“The plan focuses on delivering a noticeably better passenger experience, ensuring a continued focus on improved resilience and delivering a competitive cost of operation,” Heathrow said.
“To date cost efficiencies secured and revenue initiatives implemented are projected to contribute £380 million benefit over the period to the end of 2018.”