Heathrow6.45% S Regulatory News (88BX)

07.00 12 January 2015

Heathrow traffic and business commentary December 2014

2014 Full-Year Traffic Results:

· A record 73.4 million passengers made journeys through Heathrow in 2014, an increase of 1.4% on 2013

· Fast-growing emerging markets continue to be a driver of traffic growth at Heathrow, with passenger volumes up 6.3% to Latin America, 5.2% to East Asia and 3.5% to the Middle East & Central Asia

· Growth of 2.5% in transfer passenger volumes at the UK's only hub attracted more long-haul flights to growth markets like China and Mexico

· The UK's largest port saw growth of 5.3% in cargo volumes to 1.5 million metric tonnes, helping more of Britain's exports reach new markets

December 2014 Traffic Results:

· Heathrow saw its busiest ever December with 5.93 million passengers choosing to travel through the airport over the festive season, an increase of 2.4% on December 2013

· Larger, quieter aircraft continued to contribute to passenger growth at Heathrow. Seats per aircraft increased 0.6% to 208.4, while load factors remained strong at 76.6%. Passengers per aircraft rose 0.4% to 159.6

· Passenger volumes continued growth within emerging markets, increasing 15.1% to China, 10.9% to Mexico and 4.0% to the Middle East & Central Asia

· Heathrow continued to welcome the transfer passengers that make such long-haul routes viable, with year-on-year volumes increasing 4.7%

· Cargo volumes saw strong growth of 6.2% overall, including increases of 33.5% to Mexico, 29.4% to Brazil, 15% to Turkey and 11.2% to India

Heathrow CEO John Holland-Kaye said:

"Vietnam Airlines' announcement that it is moving its operation from Gatwick to Heathrow is good news for Britain as it secures a direct flight to an important growth economy, with more frequent flights and cargo capacity. It also underlines that airlines can only make flights to many long haul destinations viable from a hub airport like Heathrow.Only by expanding Heathrow can we add direct flights to the world's growing cities, increase our exports and connect all of the UK to global growth. Expanding Heathrow will help Britain win the race for growth."