Heathrow October traffic and business commentary (7958O)

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RNS Number : 7958O

Heathrow

10 November 2016

07.00 10(th) November 2016

Heathrow cargo climbs 7% in wake of Government's backing for third runway

-- Heathrow welcomed 6.5 million passengers in October alongside a 7% surge in cargo volumes. Heathrow is Britain's largest port, accounting for almost 30% of all UK exports by value outside the EU last year

-- Cargo growth was particularly strong to fast-growing markets in Latin America and East Asia (Mexico up 28%, China up 21% and Brazil up 18%). Trade with India, the world's fastest growing large economy, also increased in October with cargo up 3.1% as the Prime Minister returned from her first bilateral overseas visit to forge a new global role for the UK

-- Emerging market passenger growth was also strong, with Mexico up 9.4%, East Asia up 2.8% and India up 2.1% - evidence that demand to fly from the UK's front door remains strong

-- Larger, quieter and more efficient aircraft continued to be a driver for growth in passenger volumes which are up 0.5% year-to-date in 2016 as airlines deploy more and more new generation Airbus A380s, A350s and Boeing 787s at Heathrow. Overall passenger volumes for October were down 1.2% over the same month last year due in part to cancellations stemming from Hurricane Matthew in the United States

-- In a major boost for the UK economy, the Government announced its support for a new runway at Heathrow - the first full-length runway in the south east since the second world war. The decision to back Heathrow and expand the country's biggest port underlined the UK's 'open for business' credentials. The Government will begin consulting on a draft national policy statement in early 2017

-- Britain's supply chain benefitted from an immediate boost following the Government's decision as Heathrow confirmed GBP50m of contracts would be issued before the end of 2017. 95% of Heathrow's procurement spend on expansion will be with the British supply chain, 60% of which will be outside London

-- Heathrow's Skills Taskforce - chaired by Lord Blunkett - held its inaugural meeting in October. The Taskforce is composed of experts drawn from business, unions and education and aims to deliver a third runway with a long-term skills legacy for local communities

Heathrow CEO John Holland-Kaye said:

"In October, the Prime Minister sent a clear message to the world that her Government would expand Heathrow, showing that Britain is open for business and confident in its future.

"With the support of communities across the UK, Heathrow is now working at pace to deliver the benefits of Britain's new runway - an affordable plan that creates more jobs, boosts exporters and builds an economy that is stronger and fairer for everyone - as quickly as possible."

 
 Traffic Summary 
 
 October 2016 
 
                                                                Jan 
                                                                 to                    Nov 2015 
 Terminal Passengers                                            Oct                          to 
  (000s)                          Month   % Change             2016   % Change         Oct 2016   % Change 
 Heathrow                         6,481       -1.2           63,792        0.5           75,275        0.5 
=====================  ================  =========  ===============  =========  ===============  ========= 
 
 
                                                                Jan 
                                                                 to                    Nov 2015 
 Air Transport                                                  Oct                          to 
  Movements                       Month   % Change             2016   % Change         Oct 2016   % Change 
 Heathrow                        41,139        1.6          398,624        0.2          472,800       -0.0 
=====================  ================  =========  ===============  =========  ===============  ========= 
 
 
                                                                Jan 
                                                                 to                    Nov 2015 
 Cargo                                                          Oct                          to 
  (Metric Tonnes)                 Month   % Change             2016   % Change         Oct 2016   % Change 
 Heathrow                       141,444        6.7        1,269,511        2.6        1,528,875        1.9 
=====================  ================  =========  ===============  =========  ===============  ========= 
 
 
 Market comparison                                              Jan 
  (000s)                                                         to                    Nov 2015 
                                                                Oct                          to 
                                  Month   % Change             2016   % Change         Oct 2016   % Change 
 Market 
=====================  ================  =========  ===============  =========  ===============  ========= 
 UK                                 411       -3.8            3,893      -11.5            4,636      -12.0 
 Europe                           2,785       -0.0           26,914        1.5           31,564        1.6 
 Africa                             271       -1.6            2,623       -5.0            3,161       -5.4 
 North America                    1,490       -4.4           14,537       -0.9           17,140       -0.5 
 Latin America                      103       -3.6            1,037        2.4            1,233        3.2 
 Middle East                        540        0.5            5,755        7.5            6,802        7.4 
 Asia / Pacific                     881        1.0            9,032        3.0           10,738        2.9 
 Total                            6,481       -1.2           63,792        0.5           75,275        0.5 
---------------------  ----------------  ---------  ---------------  ---------  ---------------  --------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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November 10, 2016 02:00 ET (07:00 GMT)