International Consolidated Airlines Group (LSE:IAG) subsidiary British Airways faces renewed headwinds as passenger numbers at Heathrow airport slumped to a near-50-year low.
London’s largest airport lost £1.8bn in 2021 as the number of passengers fell to 19.4mln, the lowest since 1972, with current travel figures 23% behind the company’s forecast for last year.
The airport’s cost-cutting measures alleviated £870mln in expenses over the pandemic period but could not prevent losses of £3.8bn over the last two years.
Heathrow CEO John Holland-Kaye called 2021 “the worst year in Heathrow's history”, while urging the Civil Aviation Authority (CAA) not to impede recovery.
“I am anxious that the CAA will undercook the investment needed to avoid the return of “Heathrow hassle” with longer queues and delays.”
The news is likely ominous for BA’s full-year passenger results and adds to bad news between the airport and the carrier.
In the third quarter of 2021, BA’s 3.6mln passengers carried was 72.2% lower than the same period in 2019, when the company carried 13mln passengers.
BA threatened to pull out of Heathrow in November after the airport planned to increase passenger charges by 50%.
BA’s owner IAG's shares rose 1.35% in early trading to reach 163.78p.