The Moodie Davitte Report - Dermot Davitt

Heathrow Airport has updated its forecasts for traffic and financial performance for 2021, with retail income expected to reach to £189 million, a fall of -19.2% compared to 2020, which had the benefit of a strong first two months.

Despite the devastating consequences of COVID-19, which has seen some long-term partners exit the airport, Retail Director Fraser Brown has sounded an upbeat note about the travel retail business once traffic returns.

Retail revenue per passenger, which climbed +18.6% year-on-year to £10.58, is forecast to reach £8.79 in 2021, according to the airport company’s June Investor Report. Combined, it means that total aeronautical and retail income per passenger is forecast to be £37.26 (under the airport’s base case scenario for recovery), behind the 2020 figure of £39.84.

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