HomeBusinessHeathrow passenger numbers dip as Iran war impact lingers on

Heathrow passenger numbers dip as Iran war impact lingers on

Heathrow reported a decline in passenger numbers last month, with the ongoing conflict in the Middle East cited as a key factor, even as the airport experienced its busiest ever day for May.

The west London airport welcomed 7.1 million travellers through its four terminals in May, marking a 1.2 per cent decrease compared to the previous year.

This downturn was particularly evident in Middle Eastern passenger figures, which plummeted by 31 per cent, while UK passenger numbers also saw a 1.9 per cent reduction.

Despite this, the overall fall was less severe than April’s 5.3 per cent drop, which Heathrow had similarly attributed to “short-term disruption” from the conflict.

The airport did, however, set a new record for the month, handling 262,000 passengers on 22 May, coinciding with the start of the school half-term break.

As it marked its 80th anniversary last month, Heathrow also confirmed it is proceeding with significant investment plans, including upgrades to Terminal 4’s car parks and check-in facilities.

Heathrow is hoping to secure planning permission by 2029 to build a third runway (Jonathan Brady/PA)
Heathrow is hoping to secure planning permission by 2029 to build a third runway (Jonathan Brady/PA)

It hit out at the Civil Aviation Authority (CAA), claiming the regulator was proposing cuts to its investment plans.

“While other countries expand their hub airports, the CAA’s proposed cuts to our investment plans risk taking the UK backwards and weakening our competitiveness,” it said.

In March, the CAA announced proposals to increase the per passenger amount that Heathrow can charge airlines during the next five years by 1 per cent.

It is consulting on capping Heathrow’s average charge for 2027 to 2031 at between £27.20 and £30.50, which is 16% or £5.40 below what Heathrow recommended, and 25 per cent or £5.80 above the amount suggested by airlines.

As well as setting the cap on the maximum fees Heathrow can charge, the CAA also decides where and how much the airport can invest, and what it can spend on its daily operations and returns for shareholders.

Heathrow – which last month celebrated its 80th birthday – said it had pressed ahead with investment plans, including kicking off upgrades to its terminal four car parks and check-in facilities
Heathrow – which last month celebrated its 80th birthday – said it had pressed ahead with investment plans, including kicking off upgrades to its terminal four car parks and check-in facilities (PA)

Thomas Woldbye, chief executive of Heathrow, said: “Heathrow has kept Britain connected for 80 years – but today we’re operating at capacity.

“Demand for travel and trade is strong, and passengers want more choice, better connections and good value.

“But both short and long-term growth of the UK’s only hub airport is at risk if the CAA delay necessary investment.”

Heathrow is hoping to secure planning permission by 2029 to build a third runway.

Funding the cost of expansion will be dealt with through a separate CAA process.

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