Heathrow6.45% S Regulatory News (88BX)

 07.00 11 December 2014

Heathrow traffic and business commentary November 2014

· Heathrow saw its busiest ever November with 5.47 million passengers choosing to travel through the airport, an increase of 1.1% on November 2013

· Passenger growth continued to be driven by larger, fuller, quieter aircraft at Heathrow. Seats per aircraft increased 1.0% to 204.3, while load factors increased 1.1 percentage points to 71.3%. Passengers per aircraft rose 2.6% to 145.7

· Passenger volumes continued growth within emerging markets, increasing 12.7% to China, 6.9% to Latin America and 4.2% to Middle East & Central Asia

· Heathrow continued to welcome the transfer passengers that make such long-haul routes viable, with year-on-year volumes increasing 3.9%

· Cargo was up 2.3% overall, increasing 41.3% to Mexico, 37.6% to Brazil, 20.0% to India and 13.3% to Turkey

· To meet growing passenger and cargo demand, Aeromexico recently announced the deployment of its Boeing 787 Dreamliners and an increase to five weekly frequencies on its Mexico City-London route from next spring

· In a joint letter to the Airports Commission, Aberdeen, Glasgow, Leeds Bradford, Liverpool and Newcastle airports recognised the critical role Heathrow plays in connecting local economies to global markets and voiced their support for an expanded Heathrow as the right option for whole of the UK

· The Airports Commission's national consultation document confirmed that Heathrow expansion will deliver more economic benefits and more jobs throughout the UK than expansion at Gatwick. The Commission puts the economic benefit of a new runway at Heathrow at £112-£211bn[i], a significantly higher figure than previously estimated and as much as £97bn more than choosing Gatwick[ii]

Heathrow CEO John Holland-Kaye said:

"Aeromexico's growth to five weekly services is a boon for British businesses who will benefit from the increased convenience of 12 weekly departures to Mexico City and the choice between two global carriers in competing alliances that a strong hub at Heathrow generates.

While Gatwick's flights to Cancun are great for a holiday in the sun, they don't support the economic activity that creates jobs in the UK. Only Heathrow attracts the long haul flights that connect Britain to fast growing global commercial centres like Mexico City - enabling £14.3 million worth of British exports to Mexico already this year. If Britain wants the growth driven by direct long haul flights to emerging markets, it needs a successful hub airport."