UK's Heathrow profits jump on record passenger numbers

LONDON (Reuters) - Britain's Heathrow Airport reported a jump in annual profit after passenger numbers rose to record levels in 2024, weeks after the government threw its weight behind the hub's expansion project as it seeks boosts to trade and economic growth.

Last year 84 million people travelled through Heathrow, Europe's busiest airport, beating the pre-COVID record set in 2019 by 3 million, and helping to make the case for it to build a new runway.

For 2024, Heathrow posted pretax profit of 917 million pounds ($1.16 billion), up 31% on the previous year on revenue which came in at 3.6 billion pounds, down 3.5% on the previous year after the regulator limited charges.

"2024 underscores why Heathrow is the UK's gateway to growth," Chief Executive Thomas Woldbye said in a statement on Wednesday, highlighting cargo volumes which were up 10%.

Heathrow, located 15 miles west of London, confirmed it would submit its proposals for a third runway to the government this summer, but said "policy changes are needed to deliver the project successfully" and it would work with the government.

British governments have dithered for decades over expanding Heathrow, caught between the desire for new trade and tourism and the high cost of the build and environmental concerns.

But finance minister Rachel Reeves said in January the case for the runway was stronger than ever and she wanted to see permission being granted within the next four years.

The airport also said it would pay its owners, which include Ardian, Qatar Investment Authority, and Saudi Arabia's Public Investment Fund, a dividend of 250 million pounds in the coming weeks.

($1 = 0.7904 pounds)

(Reporting by Sarah Young, Editing by Paul Sandle)