Among all of the industries to have been lifted by the easing of pandemic-era restrictions, few have expressed more relief than airlines and airports. Heathrow’s passengers trebled last year, while Rolls-Royce’s civil aviation unit also benefited. Yet, the recovery isn’t complete. Heathrow remained loss-making last year and told its investors it doesn’t expect to pay a dividend this year.
(Bloomberg) — Among all of the industries to have been lifted by the easing of pandemic-era restrictions, few have expressed more relief than airlines and airports. Heathrow’s passengers trebled last year, while Rolls-Royce’s civil aviation unit also benefited. Yet, the recovery isn’t complete. Heathrow remained loss-making last year and told its investors it doesn’t expect to pay a dividend this year.
Here’s the key business news from London this morning:
In The City
Heathrow Airport: The number of passengers flying through the UK’s busiest airport tripled in 2022 to 62 million, as the aviation industry benefitted from the removal of pandemic-era restrictions.
- Still, the airport made a loss throughout the year with inflation, lower passenger numbers and charges impacting their bottom line
Rolls-Royce Holdings Plc: The aerospace supplier will embark on a strategic review of its operations, with new Chief Executive Officer Tufan Erginbilgic vowing the UK engineering company can deliver “materially higher profit, cash flows and returns.”
- A recovery in international air travel helped grow its large engine flying hours — a key driver of revenue — by 35% year on year, alongside new orders from Malaysia Aviation Group, Norse Atlantic Airways and Qantas
Anglo American Plc: The miner took a $1.7 billion writedown on the giant fertilizer project in the North of England that it rescued from collapse three years ago and said the mine is now expected to start sales in 2027.
- The update came as the global mining company reported full year earnings that beat analyst estimates, although lower than its record result in 2021 thanks to inflation and higher energy prices, alongside lower production volumes
WPP Plc: The advertising agency’s revenue growth beat analyst estimates as it won $5.9 billion of new business in 2022, from companies like Audible, SC Johnson, and Verizon.
In Westminster
The government vowed to help hundreds of energy-intensive companies cope with high power prices in an effort to make domestic industries such as steel and chemicals more competitive in Europe. Possible changes — which will be consulted on in the spring — could include reductions in network charges, the business department said.
In a keynote speech in Manchester today, Keir Starmer will promise a long-term plan to fix Britain’s ailing public services and grow the economy if his Labour Party wins a general election expected next year.
Inflation, meanwhile, “may soon peak in the grocery aisle,” writes Bloomberg Opinion’s Andrea Felsted.
In Case You Missed It
England’s men’s professional football clubs will be overseen by an independent regulator in a bid to ensure financial security, with tougher ownership criteria and rules to stop teams joining breakaway competitions.
There are fewer than 200 women fund managers in the UK but 60 more will receive training each year. Can this change the industry? Here’s a closer look.
Man Group Plc Chief Executive Officer Luke Ellis says asking people where they went to school won’t help the financial industry achieve diversity. In this week’s In the City podcast, the leader of the world’s largest publicly listed hedge fund talks about how far the UK financial industry has come in terms of recruiting from a bigger pool of talented people. Listen here:
Looking Ahead
Jupiter Fund Management Plc will round out the earnings week tomorrow. The direction of client money flows and activity levels will be key when the struggling asset manager reports full-year results at 7:00 a.m. International Consolidated Airlines Group SA is also expected to report tomorrow.
The London-based firm suffered outflows for more than four years and industry giant Fidelity International recently blocked retail clients from investing in Jupiter’s UK Mid Cap Fund — which was once among the firm’s largest vehicles.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
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