Image: London Gatwick
Revenue at London Gatwick increased in the first half of 2023, compared to 2022, and the business achieved an improved EBITDA and increased net profit, the airport said today when publishing its interim financial results.
2023 interim results include:
18.5 million passengers travelled through the airport in the first six months of 2023, up 41% compared to the same period in 2022. However, traffic was heavily impacted by COVID-19 travel restrictions, particularly in Q1 2022.
£423.3 million revenue, up 45% compared to 2022. Includes £212.7 million aeronautical income and £210.6 million from non-aeronautical sources, such as retail and parking
Operating costs (excluding depreciation, amortisation and exceptional costs) were £187.6 million for the period, up 31% on 2022
EBITDA at £235.7m, up 59% on 2022, with net profit for the period at £79.1 million, up 56%
Challenging operational environment in Europe
While air traffic movements at London Gatwick remain below pre-pandemic levels at 86% for the period, a greater number of air traffic control restrictions than normal, across large parts of Europe affected on time performance. Restrictions are put in place to manage and smooth out the flow of congested air traffic.
London Gatwick is working with airlines and ground handlers to ensure aircraft are ready to go for the first wave of departures early in the morning and throughout the rest of the day. The airport also took proactive action to prevent ground handling industrial action this summer, ensuring flights could continue as normal.
A further 200 security officers were recruited ahead of the busy summer period, which helped the airport get 98% of passengers through security in less than five minutes. The airport also hit 99.6% of all measured service level requirements during the period.
Future sustainable growth
London Gatwick has published a six-year Capital Investment Programme setting out significant improvements to develop and enhance airport infrastructure and facilities, while also meeting the airport’s sustainability goals.
The programme has been consulted on and agreed with airlines, and includes:
Investing over £250 million to meet the commitment to become a net zero airport by 2030 (for Scope 1 and 2 emissions), including replacing over 100 gas boilers
A £120 million-plus extension to the existing Pier 6 in the North Terminal to provide eight new pier-served aircraft stands
A £70 million programme to rehabilitate airport taxiways, with airfield resilience improved further with a new Rapid Exit Taxiway, reducing runway occupancy and aircraft taxi times
A new £44.2 million, 3,250 space new multi storey car park in the North Terminal, due to open in Autumn 2024
A £10-million pound plus redevelopment of the North Terminal departure lounge due to complete in 2024.
London Gatwick’s planning application (known as a Development Consent Order (DCO)) to bring its existing Northern Runway into routine use was also accepted for detailed examination by the Planning Inspectorate on 3 August and will now be scrutinised in detail by a panel of independent inspectors. A successful application would bring both resilience and additional capacity, while also generating around 14,000 new jobs and £1 billion for the region’s economy every year.
Stewart Wingate, chief executive officer, London Gatwick, said: “We worked closely with our partners to make sure the airport was well resourced ahead of the summer. This and the hard work of our frontline colleagues helped us provide passengers with a good level of service, despite a challenging operational environment across much of Europe.
“We will continue working closely with our airport partners to improve punctuality, supported by projects in our new Capital Investment Programme to build airport resilience and long-term sustainable growth. In this respect, I’m pleased that our planning application to bring our existing Northern Runway into routine use has moved forward to the examination stage.
“It’s also promising to see the airport’s recovery continue, as we once again provide passengers with more choice. Forty-nine airlines now fly from the airport to over 200 destinations, including 50 long haul routes.”