NO AIR TRAVEL RECOVERY UNTIL 2026: UK’S HEATHROW AIRPORT

Tue 26 October 2021:

Heathrow Airport in the United Kingdom estimates that air traffic will not fully resume until at least 2026. Despite the fact that the travel industry picked up momentum in the third quarter as global pandemic restrictions lifted, the corporation is still losing money, according to a statement released Tuesday.

Although it has lost 3.4 billion British pounds ($4.68 billion) since the start of the epidemic, the London airport reported passenger numbers returned to 28% and cargo to 90% of pre-pandemic levels in the third quarter.

Heathrow, which lost its title as Europe’s busiest airport to Paris last year, sustained significant losses during the pandemic and has since tried to recoup losses by boosting airline fees.

Last week, the United Kingdom’s aviation authority warned Heathrow would not be allowed to boost passenger fees as much as it wanted, but airlines continued to fight the hike’s amount as the hub and carriers battle to recoup pandemic losses.

“The CAA’s (Civil Aviation Authority’s) Initial Proposals do not go far enough to ensure that investors can achieve a fair return,” Heathrow said in a statement on Tuesday.

The airport, which is owned by Spain’s Ferrovial, the Qatar Investment Authority and China Investment among others, said its shareholders have achieved negative returns in real-term over the last 15 years.

Heathrow, the country’s busiest airport, said it had 4.1 billion pounds in cash on hand to tide it over until the market recovers.

(with agency)

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