LONDON- Amidst a demanding operational landscape, London Gatwick Airport (LGW) sustained robust travel demand during the first half (H1) of 2023.
Bolstered by the diligent efforts of front-line staff, the airport reported a rise in revenue for this period compared to the previous year (2022). Moreover, the airport’s interim financial results reveal an enhanced EBITDA and higher net profit achieved during this time frame.
London Gatwick H1 of 2023
The interim results for 2023 encompass the following key points:
- 18.5 million passengers traveled through the airport in the initial six months of 2023, marking a 41% increase compared to the corresponding period in 2022. Nevertheless, COVID-19-related travel restrictions substantially impacted traffic, particularly in Q1 2022.
- Revenue reached £423.3 million, reflecting a 45% rise compared to 2022. This total includes £212.7 million from aeronautical sources and £210.6 million from non-aeronautical sources such as retail and parking.
- Operating costs (excluding depreciation, amortization, and exceptional costs) amounted to £187.6 million for the period, showing a 31% increase from 2022.
- EBITDA stood at £235.7 million, a notable 59% surge from 2022, with a corresponding net profit of £79.1 million, representing a 56% increase.
- The operational environment in Europe posed challenges. Despite air traffic movements at London Gatwick being at 86% of pre-pandemic levels during the period, numerous air traffic control restrictions across significant parts of Europe impacted punctuality. Such restrictions are implemented to regulate congested air traffic flows.
- Collaborative efforts with airlines and ground handlers are underway to ensure aircraft readiness for the initial wave of departures in the morning and throughout the day. The airport preemptively addressed potential ground handling industrial action to ensure uninterrupted flight operations this summer.
- Ahead of the busy summer season, the recruitment of an additional 200 security officers contributed to an impressive feat of getting 98% of passengers through security in under five minutes. Moreover, the airport achieved a remarkable 99.6% compliance with all measured service level requirements during the specified period.
Sustainable Growth
Envisioning sustainable growth in the future,
London Gatwick has unveiled a comprehensive six-year Capital Investment Programme, outlining substantial enhancements to cultivate and elevate airport infrastructure and amenities while aligning with the airport’s sustainability objectives.
This program, which has undergone consultation and received concurrence from airlines, encompasses:
- An investment exceeding £250 million to realize the commitment of becoming a net zero airport by 2030, specifically targeting Scope 1 and 2 emissions. This initiative includes the replacement of more than 100 gas boilers.
- A substantial extension worth over £120 million for the existing Pier 6 in the North Terminal led to the establishment of eight novel pier-served aircraft stands.
- A £70 million endeavor focused on rehabilitating airport taxiways, further bolstered by adding a new Rapid Exit Taxiway, contributing to reducing runway occupancy and aircraft taxi durations.
- The creation of a new multi-story car park in the North Terminal with a capacity of 3,250 spaces, amounting to £44.2 million in investment. This facility is anticipated to be operational by Autumn 2024.
- A redevelopment project exceeding £10 million for the North Terminal departure lounge is slated for completion in 2024.
Moreover, London Gatwick’s strategic planning application, referred to as a Development Consent Order (DCO), aimed at integrating the existing Northern Runway into routine operations, has been accepted for thorough examination by the Planning Inspectorate as of August 3rd.
This application will undergo meticulous scrutiny by an impartial panel of inspectors.
If approved, this strategic step would enhance operational resilience and additional capacity while fostering approximately 14,000 new job opportunities and contributing £1 billion annually to the regional economy.
CEO Insights
Stewart Wingate, the CEO of London Gatwick, remarked, “Our collaborative efforts with our partners ensured the airport was well-prepared for the summer season.
Alongside the dedication of our frontline staff, this enabled us to deliver a commendable level of service to passengers, despite the operational challenges faced across a significant part of Europe.
“Our commitment to enhancing punctuality remains steadfast, bolstered by initiatives outlined in our newly unveiled Capital Investment Programme. This program is designed to bolster airport resilience and foster sustainable growth in the long term while working closely with our airport partners.
I’m pleased to note the progression of our planning application, advancing to the examination phase, for the integration of our existing Northern Runway into regular operations.
Furthermore, witnessing the ongoing recovery of the airport is promising as we continually expand passenger options. Presently, the airport boasts a robust network of 49 airlines offering connectivity to over 200 destinations, including an impressive array of 50 long-haul routes.”
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