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Heathrow boss: PM 'showing leadership' on airport expansion

Heathrow's chief executive says the Prime Minister is "showing leadership" in her approach to the long-delayed decision on airport expansion in the South East.

John Holland-Kaye made his remarks days after it was revealed that while the Government would announce its preference next week , it could be at least a year before MPs vote on the issue, to allow for a full debate.

A decision to allow cabinet ministers to voice any criticisms of the decision, for a limited time, was seen as bolstering the chances of Heathrow emerging victorious - given the opposition to a third runway from senior ministers including Foreign Secretary Boris Johnson.

He once said he was prepared to lie down "in front of the bulldozers" if the plans were approved.

Gatwick is the other airport vying for extra capacity through a new, second, runway.

Mr Holland-Kaye was speaking while outlining Heathrow's latest results, which showed a record 57.3 million passengers used the west London hub over the first nine months of its financial year.

It represented growth of 0.7%, the airport said, with cargo volumes rising by more than 2%.

It also reported a £293m pre-tax loss - blamed on a number of exceptional items including accounting treatments - compared to a £552m profit in the nine-month period last year.

Airline shares were the biggest gainers in early trading on the FTSE 100 - led by British Airways owner IAG.

Neil Wilson, markets analyst at ETX Capital, said: "Airlines are trading higher this morning ahead of what's widely expected to be a green light for a third runway for Heathrow."

The airport, which has argued it is ripe for expansion as it is operating at full capacity, recently moved to bolster its credentials as being economically critical to the UK by announcing a self-styled 'Brexit Boost' plan.

It said plans for 25,000 additional flights per year to growth destinations from 2021 could be handled on its existing two runways while construction of a third was carried out.

The chief executive said on Thursday: "Heathrow's passengers are getting better service at lower prices - and record numbers are choosing the UK's hub airport.

"The Prime Minister is showing leadership and will decide on the critical national issue of Heathrow expansion in the next few days.

"Heathrow is the right choice to help make Britain stronger and fairer for everyone - that's why there is such broad support across the UK from Newquay to Inverness for our plans - and we stand ready to deliver the runway that will keep Britain a confident, outward looking trading nation as soon as we get the green light from Government."