Press releases

Record breaking year strengthens case for second runway

26/06/2014

  • Gatwick Airport Ltd publishes its results for the year ended 31 March 2014
  • Turnover of £593.7m and EBITDA of £259.4m resulted in a profit of £57.5m
  • Passenger numbers are at record levels of 35.9m
  • £1.2bn investment in enhancing airport facilities completed

London Gatwick announced today that it has delivered record passenger growth, increasing its share of traffic in the London market, and achieving a profit.

The airport achieved strong results by competing vigorously with the other London airports, continuing to attract new airlines – serving both emerging and established markets – and increasing its share in the business travel market. Gatwick also saw growth with its existing carriers and continued to invest in new facilities to improve the passenger experience.

It was also the year that Gatwick was shortlisted by the Airports Commission for the UK’s next new runway. The airport could deliver a new runway more quickly, at a lower cost and with far less environmental impact than other options. It would also deliver greater economic benefits and more connections.

More recently, Gatwick welcomed news that Govia has been awarded the new Thameslink franchise, which will transform rail services to the airport with improved, high quality trains and a doubling of rail capacity at Gatwick by 2018.

Stewart Wingate, CEO of London Gatwick, said: “Gatwick’s record performance and growth to around 36 million passengers this year demonstrates how we are successfully competing in the London market and why we are best-placed to deliver the UK’s next new runway. Airlines and passengers are increasingly choosing to fly from Gatwick and this growth is expected to continue. And despite getting busier and handling growing numbers of passengers, we remain the top London airport for passenger satisfaction.

“Expansion at Gatwick would ensure London can effectively compete with its European neighbours and provide essential air links that the UK needs to both established and emerging markets.

“A two runway Gatwick would provide London and the UK with two world class airports and enable businesses to thrive and the economy to grow. It is, without a doubt, the obvious solution to creating the best future outcome for airlines, passengers and UK Plc, enabling more people to fly each year to the widest range of short and long haul destinations on more competitively priced fares.”

Key highlights of the year:

  • Passenger numbers reached 35.9m, reflecting 4.8% growth on the prior year and marking a record year for Gatwick. One in five passengers is now travelling on business from Gatwick.
  • Turnover is up 10.2% to £593.7m and EBITDA is up 14.2% to £259.4m resulting in a profit of £57.5m. This compared to a loss in the financial year ending 31 March 2013 of £29.1m.
  • Gatwick was shortlisted for a new runway by the Airports Commission. Following this announcement, Gatwick continued its detailed work to evidence why a second runway will enable more people to fly to more destinations, earlier, and deliver it more cost effectively, with a higher degree of certainty and much less planning, construction and financial risk.
  • Airlines continued to grow, open new routes and add new aircraft at Gatwick.
  • easyJet – the UK’s largest airline – launched new services to key business markets in Europe, including Paris, Brussels and Strasbourg, and strengthened London’s link to the regions by launching services to Jersey and Newcastle, and doubling its capacity to Inverness.
  • Norwegian launched 12 new European routes and announced it will start low-cost long haul transatlantic services in July 2014, including New York and Los Angeles demonstrating how aviation is rapidly evolving.
  • British Airways increased capacity across its routes and added an 11th long haul aircraft to its Gatwick fleet.
  • Gatwick welcomed back Air China’s direct flights to Beijing and now serves four of the eight high growth markets as defined by Goldman Sachs.
  • Turkish Airlines and Vietnam Airlines both increased their frequencies, offering passengers more choice and increasing traffic on these routes.
  • Emirates started a daily A380 service to Dubai adding 25% more capacity on a key high frequency Middle Eastern link for the UK.
  • Thomson commenced its first services on one of the game-changing new generation aircraft – the Boeing 787 Dreamliner – which makes it possible for airlines to fly longer point-to-point routes at a more competitive cost without needing to stop over at a hub airport.
  • Gatwick achieved high service and satisfaction levels, with Gatwick’s service quality remaining the best in London.
  • Gatwick’s ‘Contracts and Commitments’ framework was endorsed by the CAA, creating a landmark change from regulation and offering a better deal for both airlines and passengers. Major airlines including easyJet, Thomson, Monarch and Norwegian Air Shuttle have agreed long term contracts. This is a major step towards creating greater competition in the industry that will help deliver better outcomes for passengers in terms of service, choice and price.
  • Investment to transform the airport continued; £201m was invested in the year, including transforming the South Terminal departure lounge, which saw more than 20 new and refreshed stores open. The airport commenced its largest single project to date – a £183m re-build of Pier 1, which will include a new baggage system for the South Terminal. Gatwick’s investment over the last five years totals more than £1.2 bn. A further £195m is planned to be invested in the next financial year.
  • Gatwick also welcomed the Government’s announcement that it will contribute £50m of funding to kick-start the redevelopment of the Gatwick Airport rail station and turn the UK’s busiest station into a world-class transport hub.

For Gatwick’s full year-end results report please visit our Investor Relations website.

Notes to Editors

For further information please contact

Media enquiries Heather Griffiths 07866 786950

Investor enquiries David Harpur 07808 510738

For more information contact:

Gatwick Airport press office

t: + 44 (0) 1293 505000
e: gatwickmedia@gatwickairport.com

About London Gatwick

Gatwick Airport is the UK’s second largest airport and the most efficient single-runway airport in the world. It serves more than 200 destinations in 90 countries for around 38 million passengers a year on short and long-haul point-to-point services. It is also a major economic driver for the South-East region, generating around 21,000 on-airport jobs and a further 10,000 jobs through related activities. The airport is 28 miles south of London with excellent public transport links, including the Gatwick Express. Gatwick Airport is owned by a group of international investment funds, of which Global Infrastructure Partners is the largest shareholder.

In its December 2013 interim report, the Airports Commission included London Gatwick and Heathrow on its shortlist of potential locations for a new runway in the UK. Expansion at Gatwick will best meet the UK’s aviation needs for the future, can provide the greatest economic boost with the least environmental impact, and a new runway can be operational by 2025. For further information, see: www.gatwickobviously.com

Follow us on Twitter at www.twitter.com/Gatwick_Airport

Media enquiries

Gatwick Airport press office
+ 44 (0) 1293 505000

gatwickmedia@gatwickairport.com

Gatwick Airport airfield