• Heathrow was Europe’s busiest airport in 2024, with a capacity of 51.5m seats¹
• At Gatwick, the world’s busiest single-runway airport, planes take off or land every 95 seconds – falling to just 65 seconds apart during peak hours in August²
• Heathrow’s expansion plans include a third runway, new terminal and diversion of the M25³

Trading volumes are typically subdued in August, suggesting that there may be an inverse correlation between financial market activity and air travel, as this month traditionally sees heightened activity at airports. With air travel returning to pre-pandemic levels last year, much investment is needed to maintain and expand airport capacity around the world.

This week we will discuss government supported plans for the busiest airport in Europe, Heathrow, and the infrastructure exposure within our income mandate. Should you wish to avoid the crowds but still enjoy a summer getaway though, the Independent suggests traveling on a Tuesday, Wednesday or Saturday as these are usually quieter.

Source: OAG aviation, 2025

Heathrow

Debate and planning around Heathrow’s expansion has spanned nearly two decades, with their latest plans including a third runway, new terminal, enhancement of local rail and tube networks, creation of two new parkways and diversion of the M25 being backed by Chancellor Rachel Reeves. The work proposed is estimated to be completed within ten years with an associated cost of £49bn, mostly raised in private funding.

These proposals have been put forward with the broader objective of supporting economic growth. The airport’s expansion is expected to generate employment, enhance trade and logistical connectivity, boost tourism, and attract investment to the UK. Additionally, the project is likely to trigger a broader infrastructure multiplier effect, whereby improvements to local transport and utilities contribute to wider economic benefits and productivity gains.

However, it is important to acknowledge the environmental implications of such a project. Climate advocates have raised concerns and proposed measures including the introduction of a frequent flyer levy and a pause in the approval process until a credible strategy is developed to offset the associated emissions.

Bowmore portfolios

Real assets, including transport infrastructure, form an important part of the alternatives allocation within our income portfolios. We invest in this area due to its stable, long-term cash flows and its ability to provide protection against inflation. Infrastructure also shows low correlation to core asset classes such as equities and bonds, offering diversification that helps reduce overall portfolio volatility.

We hold HICL, an investment trust focused on assets that deliver essential public services, primarily in the UK. These include hospitals, police stations, and other critical facilities that bring defensive characteristics to the portfolio, as demand for such services tends to remain consistent throughout economic cycles. Transport currently represents 27% of the fund and includes high-quality assets such as major roads, rail networks, and the historic St. Pancras station. The fund delivers a stable income yield of 5.48%, along with the potential for capital growth.

Source: LSEG DataStream, data as at 14/08/2025

The value of your investments can go down as well as up, so you could get back less than you invested. Past performance is not a guide to future performance.

Sources:

¹ OAG innovation, 2025

² Time Out, 2025

³ BBC, 2025