Gatwick Airport has announced an impressive 7.7% rise in passenger numbers for the first half of 2024. This growth is attributed to a resurgence in short-haul travel, despite long-haul routes lagging behind.
Strong recovery in short-haul travel has driven revenues up by 15.3% to £488 million, with pre-tax profits soaring by 36% to £136.3 million.
Gatwick Airport attributes its robust growth to a solid recovery in short-haul travel. The airport witnessed 16.9 million short-haul passengers in the first six months of 2024, just 5.6% shy of the numbers seen pre-pandemic. This uptick has been pivotal in offsetting the slow recovery in long-haul travel.
This change is not without its challenges. Stewart Wingate, Gatwick’s Chief Executive, noted that some long-haul flight slots have been temporarily reassigned to short-haul carriers. However, he remains optimistic about the future, expecting these slots to return to long-haul routes as the airport expands its network.
The demand for short-haul travel has shown resilience, with anticipation that the second half of the year will surpass the levels seen in 2019. This indicates a strong consumer preference for short-haul destinations.
Despite the positive short-haul figures, long-haul travel remains significantly below pre-pandemic levels. Overall passenger numbers are still down by 10% compared to the first half of 2019, with long-haul travel experiencing a 30% decline.
The slower recovery in long-haul travel can be attributed to various factors, including travel restrictions and changing consumer behaviour. Airlines from regions such as India, China, and other parts of Asia are expected to play a crucial role in this recovery.
The rise in passenger numbers has had a marked impact on Gatwick’s financial performance.
Revenues surged by 15.3% year-on-year, reaching £488 million. Pre-tax profits also saw a significant increase, rising by 36% to £136.3 million.
These financial gains highlight the effectiveness of Gatwick’s strategy in capitalising on short-haul demand.
Gatwick Airport is focused on future expansion to accommodate growing passenger numbers.
A key part of this expansion plan is the proposal to bring the emergency northern runway into regular use. This plan is currently awaiting government approval.
If approved, the northern runway could enable Gatwick to handle up to 75 million passengers annually by the late 2030s, a substantial increase from the 40.9 million handled last year.
Stewart Wingate expressed optimism about the future growth prospects of Gatwick Airport.
Wingate believes that with the continued expansion of its network and the potential approval of the northern runway, Gatwick is well-positioned to meet future demand.
The airport’s strategic focus on enhancing its short-haul network appears to be paying off, providing a robust foundation for future growth.
Despite the promising numbers, Gatwick faces potential challenges ahead.
The dependence on government approval for expansion plans presents a significant hurdle.
Additionally, the slower recovery of long-haul travel compared to short-haul travel could impact overall growth in the long term.
Gatwick Airport’s 7.7% increase in passenger numbers is a promising sign of recovery, particularly driven by short-haul travel.
While long-haul routes are still lagging, the airport’s strategic focus and expansion plans provide a solid foundation for future growth.
