Ferrovial’s Drive to Innovate Continues Amidst Pandemic-fueled Economic Turmoil

Justin Lee

Singapore

April 19, 2021

Heathrow T5

Ferrovial Airports is one of the world’s leading private infrastructure investors and operators. It currently has four airport assets in the United Kingdom: Heathrow (25%) and the three members of the AGS Group (50%) – Aberdeen, Glasgow and Southampton. For Heathrow and AGS, the outbreak of the COVID19 pandemic in 2020, which severely disrupted the global air travel industry, had an unprecedented impact on their operational and financial performance. In addition, UK airline operators such as Flybe entering into administration worsened the situation for the AGS-run airports.

Heathrow Airport Holdings 2020 P&L                   

Source: Ferrovial Integrated Annual Report 2020

In 2020, annual passenger throughput at London Heathrow Airport fell by 72.7% from 80.9 mil to 22.1 mil, which was the lowest number in 45 years. At Glasgow, Aberdeen and Southampton Airports, passenger numbers fell by 78%, 65.3% and 83.4% respectively.

The negative impact on financials due to the drastic declines in passenger traffic was felt across the four Ferrovial airport assets. Heathrow’s revenue fell by 61.7% to GBP 1.2b while revenues at the three AGS airports fell by 67.4% to GBP 71m. Meanwhile, Heathrow’s EBITDA fell by 85.8% to GBP 89m while EBITDA at the three AGS airports fell by 126% to reach a loss of GBP 25m.

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