Key facts
- Heathrow's tax bill increased to £129m in the first half of the year, up from £62m the previous year.
- Profit decreased by 5% to £69m.
- The airport recorded over 40 million passengers, a historic high.
- Passenger volumes to and from the Middle East fell by 25%.
- Revenue rose by 0.3% to £1.7bn.
- Airlines are lobbying for a rival bidder to be given the third runway expansion to lower costs.
Heathrow Airport's profit declined by 5% to £69 million in the first half of the year, primarily due to a more than doubling of its tax bill to £129 million. This increase was driven by government business rates and national insurance changes.
Despite the financial pressures and the ongoing conflict in the Middle East, which led to a 25% drop in passenger volumes to and from the region, Heathrow achieved a record number of passengers, exceeding 40 million for the first time. The airport saw significant growth in traffic to Asia Pacific and North America.
Revenue edged up 0.3% to £1.7 billion, largely supported by the record passenger numbers and associated charges. However, the airport's high costs have prompted airlines to advocate for a regulatory overhaul and to suggest that the third runway expansion should be awarded to a rival bidder to reduce passenger fares.
Heathrow had previously warned the government about potential fare increases due to business rates and had benefited from a £900 million transitional relief on these rates. The airport also cited the national insurance hike implemented in April 2025 as a contributing factor to increased wage pressures.