Heathrow expects 2025 adjusted EBITDA to decrease 3% year-over-year.
Heathrow Airport Limited has released its semi-annual Investor Report for June 2025, outlining its financial performance and forecasts for the year. According to the report, the airport expects its 2025 adjusted EBITDA to decrease by 3% year-over-year [1].
The report highlights strong demand in passenger traffic, with 32.6 million passengers traveling through the airport in the five months to May 2025. For the full year 2025, Heathrow forecasts passenger traffic to reach 84.2 million, a 0.5% increase over the previous year [1].
However, the report also notes that while 2025 revenue is expected to improve compared to the December 2024 forecast, higher operating costs are anticipated due to increased security requirements, additional service mitigations, and higher contractual costs, including National Insurance. These factors are expected to result in a 3% year-on-year decrease in adjusted EBITDA [1].
Heathrow has also made progress in operational performance, achieving 98.4% of regulated queue times in Central Search Areas below 5 minutes, and 97.1% in 2024. The airport's sustainability efforts have seen the contribution of Sustainable Aviation Fuel (SAF) to overall jet fuel consumption reach 2.9%, surpassing its target of 2.5% [1].
The report also provides an update on the airport's expansion plans. Following the government's support for a third runway in February, Heathrow will submit its proposal to expand the airport to the government this summer. The airport is working with ministers to agree on policy changes, particularly around airspace modernisation, planning reform, and adjustments to the regulatory model for a third runway [1].
The forecast capital expenditure (capex) for the H7 period is £4.5 billion, with £1.05 billion allocated for 2025, aimed at improving services, reducing the carbon footprint, enhancing cost efficiency, and strengthening operational resilience [1].
References:
[1] https://www.investegate.co.uk/announcement/rns/heathrow-funding-limited--44bi/june-2025-investor-report/8950964
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