London’s Gatwick airport says it expects passenger numbers to rise further in 2016 despite the Brexit referendum result, but cautioned that any economic fallout could lead to slower growth in following years.<br/>The UK’s busiest airport behind Heathrow handled more than 40m passengers for the first time in the full year to March 31, clocking up a 5.5 per cent increase that helped boost sales and profits. It anticipates 43m passengers will pass through its departures lounge and arrivals hall this financial year. Stewart Wingate, CE, said: “In the next couple of years beyond that it’s possible growth will be slowed a little. Any economic downturn [from Brexit] will be reflected.” The comments underline nervousness in aviation industry following last week’s historic vote for Britain to leave the EU.<br/>Shares in airlines have been hammered since the result, reflecting analyst concerns that the economic fallout from the outcome could hit revenues at many European and some US carriers. The direct economic impact of Brexit is likely to leave the UK air passenger market 3-5% lower by 2020, according to a report by the IATA. Gatwick, which is owned by a consortium of investors led by US private equity firm Global Infrastructure Partners, also posted a more than three-quarter jump in pre-tax profit to GBP141m. This was partly down to a revaluation of investment property and lower one-off costs.<br/>With revenue up 5.5% to GBP673.1m, the company said its control over costs was behind a 9.7% increase in earnings before interest, tax, depreciation and amortisation. <br/>
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Britain will not decide where to build a new runway at a London airport until at least October due to the political turmoil following Britons' vote to leave the EU. London Heathrow has been campaigning for 25 years to build an additional runway and a decision had been expected this summer, after it was pushed back by the government from last year. But after his side lost the vote on the country's EU membership, Prime Minister David Cameron said he would resign by October, and a Conservative leadership contest has begun. "Being realistic, given recent events, I cannot now foresee an announcement (on airport capacity in southeast England) until at least October," Transport Minister Patrick McLoughlin said. Cameron's government has been considering for four years where to build the runway, with Heathrow seen as the front-runner over Gatwick, Britain's second busiest airport, after it was selected by the Davies independent commission in 2015. However, his possible successor Theresa May opposes Heathrow expansion. Another high-profile opponent of Heathrow expansion, former London mayor Boris Johnson, said on Thursday he would not be standing for the Conservative leadership. Business leaders have repeatedly called on the government to build additional runway capacity, as Heathrow, Europe's busiest airport, is already full. But past attempts to expand the airport, 15 miles west of London in a densely populated area, have been scuppered by local opposition over concerns about increased noise and air pollution.<br/>
Passenger traffic through Dubai International Airport, the world's busiest for international travel, rose 7.2% from a year earlier to 6.72m people in May. Traffic from eastern Europe and Gulf Arab countries grew particularly fast, the airport operator said. In the first five months of this year, traffic expanded 7.0% to 34.65m passengers. Freight volumes grew 4.7% to 226,916 tonnes in May and nearly 4% to 1.06m tonnes in the first five months. Only part of Dubai's air cargo goes through Dubai International; another facility, Dubai World Central, handles pure cargo operations.<br/>
Boeing is proposing to stretch its largest 777 model to create a twin-engine behemoth aimed at delivering a knock-out blow to Airbus Group SE’s struggling A380 superjumbo, said people familiar with its plans. The US planemaker has approached several carriers about the plane it calls the 777-10X, including Dubai-based Emirates, the world’s largest operator of both Boeing’s 777 and Airbus’s double-decker aircraft, said the people, who asked not to be identified because talks are private. The proposed model would carry about 450 travellers, sharpening its rivalry with the A380, two of the people said. To do so, Boeing would stretch the frame of its 777-9 to squeeze in about four extra rows of seats. The -9, whose debut is slated for decade’s end, will be the first twin-engine model to encroach on jumbo territory by hauling more than 400 passengers. “We are always evaluating technologies, airplane configurations and market needs,” said Doug Alder, a Boeing spokesman. “While no decisions have been made, we will continue to study 777X derivatives and seek customer input to develop products that provide the most value for customers.” An Emirates spokeswoman said that the world’s biggest international airline is in “regular contact” with both Boeing and Airbus about current and future fleet requirements. While Emirates has reviewed the new 777 variant, it isn’t sold on the concept, said a person familiar with the talks. The carrier has ordered 289 jets from Boeing’s 777 family, including 150 of the upgraded versions known as the 777X. Boeing unsuccessfully pitched Emirates on its 747-8 jumbo two years ago as a potential A380 replacement.<br/>