London’s Heathrow airport has recorded increased profits for the first three-month period of the year, despite its unprecedented closure due to a power outage last month.
The fire at the West London electrical substation caused the cancellation of over 1,300 flights to and from Heathrow on March 21, 2025. Throughout the day, airlines operating from Heathrow were expected to transport more than 291,000 passengers.
For the first quarter of the year, Heathrow reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of £454 million ($604.8 million), a rise of 2.5% when compared to the same period of the year prior.
Revenue was up 2.1% at £825 million ($1.09bn), which the airport said was driven by more long-haul flying and higher property and retail income.
Adjusted operating costs increased by 1.6% to £371 million ($494.2 million) due to higher costs from PRM services, cleaning and maintenance. Utilities and other costs also increased on account of noise and vortex mitigating activities and inflation. The airport said these cost increases were partially offset by lower employment costs.
“2025 will be a pivotal year for Heathrow as we finalise our business plan for the next five years and submit our proposals to government to unlock new capacity at the UK’s gateway to growth,” said Sally Ding, Heathrow CFO.
Ding added: “Our focus on steadily improving operational performance is yielding results, and our future plans will enable us to deliver better value and more growth for our customers and the country.”
Heathrow is preparing a proposal for a third runway to present to the government by the summer, after chancellor Rachel Reeves backed expansion at the London airport earlier this year. The airport said “work continues at pace” on expansion, and it is aiming for a new runway to be operational by 2035, if it secures the necessary planning permission.
The added capacity is expected to enhance competition and consumer choice, support UK economic growth, and strengthen operational resilience at the country’s main hub airport.
The airport expects its performance outlook for 2025 to remain consistent with forecasts published in December, with the expectation that overall passenger demand in 2025 will exceed figures from last year.