Heathrow outlines early impacts of COVID-19 – Results for the 3 months

posted on 1st May 2020 by Eddie Saunders
Heathrow outlines early impacts of COVID-19 - Results for the 3 months
  • Heathrow remains open – and continues operating safely to help people get home and to secure vital supply lines for the UK
  • Significant impact on traffic – Passenger numbers declined by 18.3% during Q1 to 14.6 million and are expected to be down by around 97% in April. We expect passenger demand will remain weak until governments around the world deem it safe to lift travel restrictions. Overall revenue fell 12.7% to £593 million and adjusted EBITDA fell by 22.4% to £315 million
  • Management has responded quickly – Heathrow took immediate action to conserve cash and reduce costs by around 30%, through cutting management pay, renegotiating all contracts and consolidating operations. Capital expenditure has been cut by £650 million
  • Financial position is robust – Heathrow has £3.2 billion in liquidity, sufficient to maintain the business at least over the next 12 months, even with no passengers
  • Building passenger confidence in flying – Heathrow is working with partners round the world to establish a Common International Standard for safe air travel to help the economy recover from the COVID-19 crisis. Re-establishing long haul passenger flights is critical for the UK’s supply chain, exports, inbound tourism and education

Heathrow CEO John Holland-Kaye said:

“Heathrow is proud to serve Britain by remaining open for repatriating UK citizens and critical supplies of PPE.  When we have beaten this virus, we will need to get Britain flying again so that the economy can recover as fast as possible. That is why we are calling on the UK government to take a lead in setting a Common International Standard for safe air travel.”

At or for 3 months ended 31 March 2019 2020 Change (%)
(£m unless otherwise stated)      
Revenue 679 593 (12.7)
Cash generated from operations 426 375 (12.0)
Profit / (loss) before tax 132 (278) (310.6)
Adjusted EBITDA(1) 406 315 (22.4)
Adjusted profit / (loss) before tax(2) 57 (41) (171.9)
Heathrow (SP) Limited consolidated nominal net debt(3) 12,412 12,472 0.5
Heathrow Finance plc consolidated net debt(3) 14,361 14,542 1.3
Regulatory Asset Base(4) 16,598 16,646 0.3
Passengers (million)(5) 17.9 14.6 (18.3)
Retail revenue per passenger (£)(5) 8.92 9.28 4.0