Gatwick Airport profits tumble amid Iran conflict
Passenger numbers drop due to international travel concerns
Gatwick Airport experienced a significant drop in profits over the first half of the year due to fewer passengers travelling through its terminals, affected by the ongoing conflict in Iran.
The West Sussex airport reported pre-tax profits of £136.5 million for the six months ending 30th June, marking a decrease of 18% compared to £166.2 million in the previous year.
Passenger Numbers and Concerns
In the first half of the year, 19.1 million passengers used Gatwick's two terminals, representing a 4.7% decrease from the previous year.
Long-haul travel saw the most substantial decline, down 9.2%, as the Middle East conflict raised concerns over international travel.
Short-haul travel also saw a decrease, falling 3.9%.
The airport attributed these declines to fears about jet fuel supplies amidst the war, although there had been no reported shortages.
Travellers are also opting to book closer to their departure dates due to uncertainty brought on by the conflict.
Expansion Plans Continue
Despite these challenges, Gatwick Airport's expansion plans are set to move forward following a favourable Court of Appeal ruling at the beginning of August.
Transport Secretary Heidi Alexander approved the £2.2 billion project in September, which includes moving Gatwick's emergency runway 12 metres north to accommodate approximately 100,000 more flights annually.
Pierre Hugues-Schmit, chief executive of London Gatwick, expressed optimism, saying: “Despite a challenging geopolitical and economic backdrop, London Gatwick has continued to perform well.”
"We are also excited about our longer-term growth opportunities and with the legal process for the Northern Runway Programme now complete, we can turn our focus from planning to detailed design work and delivery,” he added.