Heathrow Airport highlights “headwinds” facing passenger traffic in 2022

Heathrow Airport says that slow traffic growth and market headwinds could dampen recovery this year

UK. Heathrow Airport served 2.86 million passengers in February, up by +520% year-on-year but nearly -50% down on pre-pandemic levels. The figures were also -15% below forecast.

In a statement, Heathrow noted the recovery in outbound leisure travel demand, but said that inbound leisure and business travel “remains suppressed by the testing and quarantine requirements that are still in place in nearly two-thirds of the markets we serve”.

It also highlighted factors that could potentially dampen the recovery in 2022. These include “higher fuel prices, longer flight times to destinations impacted by airspace closures, concerns from US travellers over war in Europe and the likelihood of new ‘Variants of Concern’, which together create huge uncertainty over the passenger forecasts this year”.

A snapshot of passenger traffic in February compared to a year earlier; click to enlarge

Based on the strength of outbound leisure bookings being reported by airlines, peak days in the summer holidays could reach up to 85% of pre-pandemic levels, said the airport company.

But it added: “This is likely to feel even busier in check-in because of the additional pre-departure checks. This is higher than current airline, handler and airport capacity, so we are putting passengers first by gearing up across the airport for peak demand, working with airlines to reduce check in times and recruiting 12,000 new colleagues, as well as reopening Terminal 4 before July. We are particularly concerned over Border Force’s ability to scale up to meet demand.”

Heathrow also expressed concern over the Civil Aviation Authority’s (CAA) new regulatory framework for the airport from this year.

Heathrow stated: “We have proposed a plan to invest in the things our passengers and airlines tell us are important, including a new baggage system for Terminal 2 and upgraded security scanners to enable passengers to keep their liquids and electronics inside their bags with less than a 2% increase to overall ticket prices. We are doing the right thing for consumers and just getting on with delivering this plan, relying on the CAA not to slash investment in capital projects or operating costs, which would risk the return of ‘Heathrow hassle’, with long queues and delays.”

Heathrow CEO John Holland-Kaye said: “Aviation’s recovery remains overshadowed by war and Covid uncertainty. But we need to ensure we are geared up to meet peak potential demand this summer and are relying on the Civil Aviation Authority to make a fair financial settlement that incentivises investment to maintain passenger service and encourages airlines and Heathrow to work together to grow passenger numbers.”

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