Gatwick Funding: 2025 results land smoothly, with runway expansion cleared for take-off
Gatwick Funding Limited has flagged that its parent, Ivy Holdco Limited, has published the 2025 Annual Report and consolidated financial statements for the group that includes the Issuer, Ivy Bidco Limited and Gatwick Airport Limited. You can find the documents and an investor presentation on the Gatwick Airport investor site at www.gatwickairport.com/investor.
For bondholders and would-be investors, the headline is straightforward: London Gatwick delivered a solid financial performance in 2025 while securing government consent for its much-debated Northern Runway Project. Operational metrics improved, the long-haul mix deepened, and the capex pipeline is clearly mapped out. There are moving parts, but the direction of travel is positive.
2025 headline numbers: resilient revenue, firm profit, slight dip in volumes
| Metric (year to 31 Dec 2025) | Result | YoY change |
|---|---|---|
| Revenue | £1,132.1m | +0.2% |
| EBITDA | £671.6m | -1.2% |
| Profit for the year | £334.7m | -2.4% |
| Passengers | 42.8m | -1.1% |
The modest revenue growth despite a 1.1% dip in passenger numbers points to a stronger mix and pricing, helped by long-haul expansion. EBITDA and profit softened a touch, but remained robust. In plain English, Gatwick squeezed more value out of each traveller while holding the operational line.
Network and operations: more destinations, sharper punctuality, higher throughput
Gatwick closed 2025 with a record breadth of service:
- 227 global destinations and the highest ever number of airlines in a calendar year at the airport – 57.
- Eight new airline partnerships secured, including Jet2, which will fly six aircraft to 29 destinations from March 2026.
- Long-haul passenger growth of 3.3% offset short-haul softness linked to temporary aircraft availability issues (-1.9%).
- Standout regional growth to Sub-Saharan Africa (22%), the Far East and South Asia (24%), and the Middle East and Central Asia (17%).
Operationally, Gatwick leaned into innovation. It became the first single-runway airport globally to roll out time-based separation – a technology change that supports more arrivals and departures per hour. That, together with close work with airlines and NATS, delivered the best on-time departures for a decade (excluding the pandemic) with an 11 percentage point improvement on 2024.
Crucially for capacity, maximum scheduled aircraft movements per hour are set to rise from 55 in 2025 to 57 in 2026. That is meaningful throughput uplift on existing assets and a clear revenue lever without waiting for major new infrastructure to complete.
Capital investment: £1.9bn pre-Northern Runway programme now in motion
The 2025 Capital Investment Programme outlines £1.9bn of pre-Northern Runway spending aimed at passenger experience, efficiency and decarbonisation. Key 2025 deliveries included:
- Upgrades to departure lounges in both North and South Terminals and a newly refurbished assisted travel lounge.
- Next Generation security scanners installed on budget and ahead of deadline.
- Groundwork completed for the Pier 6 extension, providing eight new aircraft stands, ready for summer 2027.
- New taxiways and ongoing decarbonisation initiatives to support sustainable operations.
From an investor perspective, the programme shows disciplined execution against a heavy capex slate. Delivering ahead of deadline and on budget is a tick in the box for project management credibility.
Northern Runway Project: government consent secured, delivery phase beckons
In September 2025, the Secretary of State for Transport, Heidi Alexander, granted consent for London Gatwick to bring its existing Northern Runway into routine use alongside the Main Runway. The airport is accelerating detailed planning and design as it prepares for delivery.
The £2.2bn privately financed development is projected to create more than 14,000 additional jobs and generate £1bn per year in regional economic benefits. For the credit story, the implication is clear: if executed well, the project should lift capacity, resilience and long-term cash generation. The flip side is execution and construction risk over a multi-year horizon.
Sustainability and funding: certifications and sustainability-linked debt
On the sustainability front, Gatwick became the first airport to achieve PAS 2080 certification in 2025 for cutting carbon across the asset lifecycle – from planning and design through to construction, operation and decommissioning. That is not marketing fluff; PAS 2080 focuses on embedded carbon in infrastructure delivery.
The airport also issued a second €750m sustainability-linked bond, aligning financing with emissions reduction targets. Progress continued on decarbonising heat and expanding the electric vehicle fleet, which is projected to reach 300 by 2030. The 2025 Decade of Change Report sets out progress against 10 sustainability goals targeted before 2030.
Why this matters for Gatwick Funding bondholders
- Stable top line, resilient profitability – slight dips but nothing alarming – support debt service capacity.
- Operational wins – time-based separation and a rise to 57 movements per hour in 2026 – add incremental capacity without waiting for the Northern Runway.
- Capex visibility – £1.9bn pre-runway plans plus the £2.2bn Northern Runway – underscores a long growth runway, but also sustained investment needs.
- Funding access – a second €750m sustainability-linked bond suggests continued market appetite for the credit and ESG-linked structures.
Risks and watchpoints to keep on the radar
- Execution risk – delivering the Northern Runway and wider capex to time and budget is central to the investment case.
- Traffic mix and aircraft availability – 2025 short-haul softness was linked to temporary aircraft availability; if that persists, it could weigh on volumes and retail spend.
- Regulatory and operational constraints – air traffic control performance has improved, but sustained gains are essential to monetise higher movement caps.
My take: solid 2025, smarter operations, and a credible path to more capacity
Gatwick’s 2025 performance reads as disciplined and quietly confident. Revenue nudged up despite fewer passengers, long-haul grew nicely, and the airport squeezed better punctuality out of a busy operation. The move to 57 movements per hour in 2026 is a practical, near-term revenue enabler.
Strategically, winning consent for the Northern Runway is the pivot point. It opens the door to meaningful capacity and economic benefits, with the £1.9bn pre-runway capex already improving the customer proposition and operational backbone. The sustainability credentials and linked bond issuance should also play well with fixed income investors.
It is not risk-free – few multi-billion infrastructure programmes are – but on the evidence disclosed, Gatwick is executing with focus. For bondholders, the combination of resilient 2025 numbers, operational innovation and a now de-risked planning position on the Northern Runway is a constructive setup heading into 2026.
