The airport made £38 million adjusted profit before tax for the 12 months to 31 December compared with a £684 million loss a year earlier.
It added that no dividends were paid in 2023 and none are forecast for 2024, but this could change subject to financial performance and will review it through the year.
Airport charges were reduced by 20% in real terms at the start of 2024 in line with the CAA’s H7 settlement, which means "maintaining even a small profit will require us to close a £400 million gap with efficiencies and investment trade-offs over the next three years," the airport said in a statement.
Behind-the-scenes investments are underway across the airport to boost passenger experience and operational resilience, including the upgrading of 146 security lanes as part of a £1 billion investment in next generation security equipment, and developments in place to replace the T2 baggage system.
The airport reports that record amounts of Sustainable Aviation Fuel (SAF) were used at Heathrow during 2023, including powering the inaugural 100% SAF transatlantic flight, and are committed to incentivising the use of up to 155,000 tonnes of SAF in 2024.
Heathrow CEO Thomas Woldbye said: “2023 was a good year for Heathrow from a challenging start to a great finish – We delivered much improved service for our customers, and managed to turn a small profit after three consecutive years of losses. That’s a great platform to build on, although in 2024, we are expected to deliver even further improved service to more passengers, but with airport charges cut by 20% in real terms we will have to pull every lever to become more efficient and make tough choices on where we spend and invest our money to overcome the huge cost challenge set by the CAA and remain profitable over the next three years.”
