Heathrow 'Full' As Annual Profits Slip 10%

Heathrow has announced a 10% fall in annual operating profits and argued it should be granted expansion because it is "full".

The west London hub airport said a strong operational performance in 2014 resulted in its busiest year ever, with 73.4 million passengers served, up 1.4%, but no real growth in flights.

It put the lack of flight growth down to being at full capacity.

The statement said: "With Heathrow full, Britain is falling behind in direct flights to growth markets – that’s why calls for Heathrow expansion are growing from all parts of the UK."

The Airports Commission is due to release its recommendations on expansion following the General Election, with Heathrow squaring up to rival Gatwick in the race for investment.

Heathrow insists it is best placed to deliver the needs of a modern hub airport.

Its operating profits fell 10% to £839m though revenues climbed to £2.69bn.

Accounts showed that depreciation costs associated with the new Terminal Two were a factor in the decline in operating profits.

John Holland-Kaye, Heathrow's chief executive, said: "Heathrow performed very well in 2014, with record levels of passenger service and numbers of passengers served.

"The successful opening of Terminal 2 means the nation now has a world class front door and passengers rate us the best hub airport in Europe.

"But with Heathrow full, Britain is falling behind European rivals in the race for growth.

"An expanded hub airport is best for Britain and backed by Britain.

"We have made Heathrow better - now it is time to make it bigger, and connect all of Britain to global growth."

:: Mr Holland-Kaye debated expansion plans with Gatwick chief executive Stewart Wingate on Sky's Ian King Live.