Half-year Report

Gatwick Funding Limited

22 August 2024

 

RNS Number: 3269B
Gatwick Funding Limited
22 August 2024

Issuer: Gatwick Funding Limited
Date: 22 August 2024

Gatwick Funding Limited (the "Issuer")
a company incorporated in Jersey (registered number 107376)

Half year results publication - Gatwick Airport

The Issuer's parent, Ivy Holdco Limited, today published its report and unaudited condensed interim consolidated financial statements for the six months ended 30 June 2024.

The Ivy Holdco Limited report and unaudited condensed interim financial statements consolidate the results of Ivy Holdco Limited, the Issuer, Ivy Bidco Limited and Gatwick Airport Limited. These financial statements and a related investor presentation are available on the Gatwick Airport Limited website at www.gatwickairport.com/investor.

London Gatwick reports strong start to 2024

New long-haul routes and strong demand for travel saw 19.9 million passengers travelling through London Gatwick in the first half of this year.

The continued collaboration with partners and the hard work of front-line colleagues has supported the airport's continued recovery and delivered a successful start to the year, the airport said today when publishing its interim financial results.

2024 interim results include:

·    19.9 million passengers travelled through the airport, an increase of 7.7% compared to the same period in 2023

·    Revenue at £488 million, up 15.3% compared to 2023. Includes £239 million aeronautical income and £249 million from non-aeronautical sources, such as retail and parking

·    EBITDA at £268 million, up 13.9% compared to 2023, with net profit for the period at £106 million, up 33.8%

Stewart Wingate, Chief Executive Officer of London Gatwick, said: "With the growing demand for travel, we are experiencing one of our busiest summers yet. Thanks to robust planning and close collaboration with our partners we've had a strong start to 2024, ensuring a reliable and enjoyable experience for our passengers.

"I am delighted that we have once again achieved good service levels, as evidenced by meeting 100% of our service measures. At the same time, through our Northern Runway Project, we are demonstrating our commitment to growing sustainably, in line with our Decade of Change sustainability strategy and government policy.

"Our teams have worked incredibly hard to achieve these results. As we continue to grow our network and offer more choice for passengers, we are working towards our vision to be the airport for everyone, whatever your journey."

Strong financial performance as traffic continues to grow 
Peak holiday times are continuing to attract more people to travel, representing a 90% recovery on 2019 levels.

A focus on developing new long-haul routes across the Middle East, Asia and North America, is attracting a wider range of passengers and continues to build on the airport's vision to be the airport for everyone. Recent new services include the June introduction of Singapore Airlines flights from London Gatwick plus new routes by flag carriers to key cities across China and India. 

Sustainable growth

Longer term, the examination phase for London Gatwick's planning application (Development Consent Order) to bring its existing Northern Runway into routine use will end next week, 27 August. If successful, the Northern Runway could be in routine use by the end of the decade. The plans are privately funded and work is largely contained within the airport boundary. It will deliver increased resilience and capacity for passengers, in line with the Department for Transport's policy, while generating around 14,000 new jobs and £1 billion for the economy every year.

The airport recently announced the London Gatwick Hydrogen Hub - a partnership with Airbus, easyJet and Air Products - as a significant first step towards achieving zero-carbon flights. This builds on London Gatwick's existing commitment to be net zero for Scope 1 and Scope 2 emissions by 2030 and other initiatives announced earlier in the year, such as the opening of GRIDSERVE electric vehicle charging forecourt and swapping diesel for Hydrotreated Vegetable Oil (HVO) in airport vehicles, which will save more than 950 tonnes of carbon emissions every year.  

Delivering a successful summer operation and passenger experience
Passengers have enjoyed a reliable airport experience so far this summer, with operational performance meeting 100% of the 276 agreed service measures. This includes 96.6% of passengers passing through security in five minutes or less, and working in partnership with our special assistance provider Wilson James, meeting all requirements to help passengers needing assistance. Continued collaboration with air traffic control provider, NATS, has ensured the tower is operating well and has the required resources to deliver this year's busy summer schedule for airlines and passengers.

Our food and beverage offering continues to expand and now includes Pizza Express, Big Smoke and Black Sheep Coffee. Building on the airport's commitment to provide a more efficient experience, passengers are benefiting from a more spacious redeveloped train station for the first time this summer.

Our service and airline commitments

The CAA launched a consultation with airlines earlier this month, on London Gatwick's proposal to extend the Commitments Framework until 31 March 2029. With a decision expected to be reached by the end of 2024, the extension will deliver significant benefits to passengers and airlines while encouraging long term investment in sustainable growth, all under a lower price ceiling.

ENDS

NOTES

1.    Recent additions to London Gatwick's long-haul network include Singapore Airlines flying five times per week to Changi Airport, Air India adding a five-times weekly service to Bengaluru, a daily Air China flight to Beijing, and China Southern's new three-times weekly service to Guangzhou. WestJet now fly to Halifax (4x weekly) and St Johns (3x weekly) in Canada.

2.    In terms of short-haul, London Gatwick has broadened connectivity across Europe, with new services to destinations including Gothenburg, Sweden (Norwegian), Vagar in the Faroe Islands (Atlantic Airways), Ponta Delgada in the Azores (Azores Airlines), Varna, Bulgaria (Wizz Air), and Salerno, Italy (easyJet).

About London Gatwick

With 41 million annual passengers, London Gatwick is the UK's second largest and one of Europe's top ten airports.  It is a vital piece of national infrastructure that drives both the national and regional economies by generating £5.5 billion GVA and supporting over 76,000 jobs (2023).  Almost 60 airlines fly from the airport to over 150 short-haul and more than 50 long-haul destinations.  With a declared capacity of 55 movements an hour, London Gatwick is the most efficient single runway airport in the world.

The airport is located 28 miles south of the UK capital and is extremely well-connected, with more than a quarter of England's population (15 million people) - including all of London - less than one hour away by road or rail.  A six-year, £2 billion sustainable growth programme includes an ambitious plan to be a net zero airport by 2030 and to increase capacity by bringing the airport's existing Northern Runway into routine use, alongside its Main Runway.  Vinci Airports owns a 50.01% stake in the airport, with Global Infrastructure Partners managing the remaining 49.99%. 

About VINCI Airports

The world's leading private airport operator, VINCI Airports operates more than 70 airports in 13 countries. Thanks to its expertise as a global integrator, VINCI Airports develops, finances, builds and manages airports by providing its investment capacity and its know-how in optimizing operational performance, modernizing infrastructure and managing their operations and environmental transition. VINCI Airports is the first airport operator to have committed to an international environmental strategy in 2016, to achieve the goal of net zero emissions across its entire network by 2050.

For more information:

www.vinci-airports.com

@VINCIAirports

https://www.linkedin.com/company/vinci-airports/

www.vinci-airports.com

@VINCIAirports

https://www.linkedin.com/company/vinci-airports/

About Global Infrastructure Partners

Global Infrastructure Partners (GIP) is a leading infrastructure investor that specializes in investing in, owning and operating some of the largest and most complex assets across the energy, transport, digital infrastructure and water and waste management sectors. With decarbonization central to our investment thesis, we are well positioned to support the global energy transition. Headquartered in New York, GIP has offices in Brisbane, Dallas, Hong Kong, London, Melbourne, Mumbai, Singapore, Stamford and Sydney.

GIP has approximately $115 billion in assets under management. Our portfolio companies have combined annual revenues of approximately $71 billion and employ over 116,000 people. We believe that our focus on real infrastructure assets, combined with our deep proprietary origination network and comprehensive operational expertise, enables us to be responsible stewards of our investors' capital and to create positive economic impact for communities. For more information, visit www.global-infra.com.

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