Heathrow6.45% S Regulatory News (88BX)

07.00 13 July 2015

Heathrow traffic and business commentary June 2015

· A record 6.68 million passengers (+1.1% on June 2014) travelled through Heathrow on 40,626 flights in June 2015, making it the busiest June on record both for passengers and aircraft movements

· Larger, quieter aircraft continued to be a driver for passenger growth at Heathrow. Seats per aircraft increased 2.2% to 208 while passengers per aircraft rose 0.4% to 165.1

· Within emerging markets, passenger volumes were particularly strong to Mexico which was up 23.6%, China up 15.2% and Turkey up 3.4%

· Cargo volumes at Heathrow the UK's biggest port by value recorded growth of 4.3% over the past 12 months, including increases of 44% to Mexico, 24.4% to Turkey, 19.7% to Brazil, 11.5% to India, 6.9% to North America and 2.8% to China

· The Airports Commission's clear recommendation for an expanded Heathrow closed the debate on where a new runway should be built. The Commission found that Heathrow's new plan for expansion can be delivered while reducing local and environmental impacts and that expansion at Heathrow is the only solution which can help British businesses compete for global growth, and support a truly national recovery built on exports, skills and investment

· New analysis in the Airports Commission's final report finds that expansion at Heathrow delivers the greatest competition benefits for passengers. The Commission found that expanding Heathrow would produce more competition in the long-haul market. This would have the greatest and quickest positive impact for passengers because the short-haul market in the UK is already very competitive. Additional capacity at Heathrow would also allow low-cost carriers to build more substantial networks as a large number of new slots become available for the first time in several decades, further driving competition at the UK's hub(1)

Heathrow CEO John Holland-Kaye said:

"On the first of July, the Airports Commission ended the debate on where a new runway should be built by unanimously recommending Heathrow's new expansion plan. It's now a binary choice for the British Government. We either expand Heathrow - creating jobs, growth, a rebalanced economy and lucrative export routes - or we do nothing and retreat as a nation. The answer is obvious, so let's get on with it."