UK. London Heathrow Airport passenger traffic fell by -82.4% year-on-year in October, and the company warned that November could be “even worse” following the latest COVID-19 lockdown in the UK.
Government guidance states that residents of England cannot travel overseas or within the UK between 5 November and 2 December, unless for work, education or other legally permitted reasons. Airlines are scaling back or cancelling services during this period.
The October passenger figure reached 1.25 million, with long-haul traffic falling even more sharply than UK or European volumes, which Heathrow blamed on “the government’s debilitating quarantine requirements”.
Heathrow is offering rapid COVID-19 tests to passengers travelling to other countries, but these are not yet approved for UK arrivals.
The airport company noted: “The lack of a testing regime has left British airports unable to compete with EU rivals, the refusal to offer English and Welsh airports business rates relief runs the risk of worsening an already challenging situation and the plans to end VAT-free shopping threatens to kick our industry when it’s down.”
As reported, the UK government has announced tax free sales on airside products for all categories (except alcohol and tobacco) will end for all international travellers from 1 January 2021 at an estimated cost of £2.1 billion to the UK economy. VAT refunds for overseas visitors in UK shops will also be removed.
Heathrow CEO John Holland-Kaye said: “Aviation is the lifeblood of the UK’s economy, critical for exports of goods and services and imports of vaccines, as well as inbound tourism, students and foreign direct investment. Lack of government action is weakening our sector, making it harder for us to support the eventual economic recovery and help deliver the Prime Minister’s vision of a global Britain.”
In recent days, as reported, Holland-Kaye called for the UK Chancellor to “urgently” review the decision to abolish the VAT refund scheme and remove airside tax-free shopping.
