Heathrow Swung to 1H Pretax Profit on Higher Revenue; No Dividends for 2022

By Anthony O. Goriainoff

London’s Heathrow Airport said Tuesday that it swung to a pretax profit for the first half of 2022 as revenue rose, but that it didn’t forecast any dividends for the year.

The airport, which is jointly owned by the Qatar Investment Authority, China Investment Corp., Spain’s Ferrovial SA and other investment companies, said pretax profit was 263 million pounds ($316.8 million) compared with a loss of GBP868 million for the first half of 2021.

Adjusted pretax loss narrowed to GBP321 million from GBP787 million the year before, a result of higher passenger numbers and higher aeronautical charges, and partially offset by increased costs.

Revenue rose to GBP1.28 billion from GBP348 million in the year-prior period.

The company added that adjusted earnings before interest, taxes, depreciation and amortization outlook for the year remains consistent with June’s guidance of GBP1.37 billion, up from GBP384 million in 2021.

Heathrow said capacity continues to be constrained by airline ground handling shortages, and that the capacity cap on departing passenger numbers, introduced in July, will remain in place until these shortages are remedied.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

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