Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. The UK’s transport secretary Heidi Alexander said the government “believes in increasing airport capacity”, as a decision looms on the expansion of Gatwick airport.
Speaking at the annual dinner of trade body Airlines UK in London last night, Alexander said the government would do “all we can to support the sector and take the brakes off growth”. She has to announce by Thursday whether she has approved Gatwick’s application to bring its emergency northern runway into regular use, which would enable 100,000 more flights every year at the West Sussex airport.
Gatwick said it could relocate the runway, which is currently only used for taxiing and in emergencies, and make it operational by the end of the year. This would cost an estimated £2.2bn – in comparison to Heathrow’s third runway, which is likely to cost far more than the last estimate of £14bn.
The climate change committee dropped its opposition to airport expansion from its carbon budget this morning. In contrast to previous advice that no airport expansion could take place without big cuts to carbon elsewhere, it was not prescriptive about where or how the expansion could occur.
However, like the Heathrow runway, the Gatwick expansion is controversial, with some MPs, local authorities and residents strongly opposed, who point to increased air and noise pollution, climate concerns and the impact on the local community. The Civil Aviation Authority announced its support for the Gatwick expansion yesterday, saying it would bring “benefits to consumers” citing more choice of destinations for passengers.
Heathrow reported a jump in annual profits this morning after passenger numbers rose to record levels in 2024, just weeks after the chancellor, Rachel Reeves, backed the proposed third runway and said it could be built within 10 years. The airport’s underlying profits rose by 31% to £917m last year while revenues dipped by 3.5% to £3.6bn after the regulator limited charges.
Thomas Woldbye, the chief executive, said:. 2024 underscores why Heathrow is the UK’s gateway to growth. Meanwhile, the British luxury carmaker Aston Martin said it plans to cut about 5% of its global workforce – 170 jobs. This is intended to save £25m. It said:.
We are commencing a process to make organisational adjustments, to ensure the business is appropriately resourced for its future plans. The Agenda. 3pm GMT: US New home sales for January. 3.30pm GMT: US EIA Crude oil stocks. 4.30pm GMT: Bank of England policymaker Swati Dhingra speaks.
