Traffic and business commentary June 2016

07.00 11^th July 2016

Cargo growth confirms Heathrow expansion mission critical for Brexit Britain

§ Cargo volumes at the UK's largest port grew 2.1% in June, with strong growth to China which was up 11%, India up 3.3% and Turkey up 3%

§ Over 6.6 million passengers travelled through Heathrow in June 2016. June's passenger numbers were down 1% on 2015 in part as a result of weather cancellations and recurring French industrial action

§ With Heathrow operating at capacity, larger, quieter aircraft continue to be a driver for growth in passenger volumes which are up 0.6% for 2016 as airlines deploy new A380s and a record number of Dreamliners at Heathrow

§ Within emerging markets, passenger volumes were strong to Latin America (+3%) and East Asia (+2%) following Avianca's increase in frequencies to a daily flight and more A380s on services to Singapore, Thailand and Korea. China and Mexico were particular bright spots, with passenger growth jumping 7%

§ Business and union leaders have set out post-Brexit priorities, with both the CBI and TUC declaring that Heathrow expansion must be at the top of the next Prime Minister's to-do list

§ New polling reveals overwhelming Parliamentary support for an expanded Heathrow, with over two-thirds of MPs backing a third runway

§ This year's ACI Europe Awards recognised Heathrow as the Best Airport over 25 million passengers, reflecting Heathrow's engagement with local communities on environmental issues and an ongoing drive to improve passenger journeys

Heathrow CEO John Holland-Kaye said:

"With cargo volumes at Heathrow growing, our next Prime Minister has a real opportunity to secure Britain's legacy as an outward-looking trading nation. Now more than ever, a decision on Heathrow expansion must be at the top of her in-tray.

"We'll double cargo capacity at the UK's largest port, helping even more British exporters trade with all the growing markets of the world. And at a time of uncertainty, a £16bn privately funded infrastructure investment will create jobs and growth across the UK.

"And with Parliament overwhelmingly endorsing a third runway, our next Prime Minister can send the strongest possible signal that Brexit Britain is open for business and confident in its future by expanding Heathrow."

 Notes to Editors:

§ Cargo / air freight is critical to Heathrow's success in winning and sustaining long-haul routes for trade and passengers. Air freight is carried in the belly-holds of passenger planes

§ Heathrow is the largest UK port by value carrying over £100bn of cargo every year, more than the joint total from Felixstowe and Southampton, the UK's biggest shipping ports

§ As the Airports Commission report stated: "Heathrow is by far the largest and most important UK airport for freight". Compared to other UK airports, the Commission said that Heathrow is "better placed to accommodate high frequencies of less thick long-haul connections and … thus more attractive for freight handling. Another attractive feature of Heathrow for the freight sector is its central position on the strategic road network."

§ Only Heathrow has plans to significantly increase its cargo-handling capacity to exploit the opportunities that greater connectivity brings for British businesses trading with existing and new markets