London’s Heathrow Airport delivered hugely disappointing passenger numbers last month as the aviation sector struggled to shake the effects of Covid and the shadow of war.
The airport’s passenger numbers remained 50% below pre-pandemic levels as 2.8mln people traveled through its hub, 15% below forecast.
The airport, which International Consolidated Airlines Group (LSE:IAG)-owned British Airways uses as a primary hub of operations, said that while outbound travel was improving, inbound travel was still suppressed by testing and quarantine requirements.
Rising fuel costs, longer flight times as a result of closed airspace in relation to the war in Ukraine, concerns from US travelers related to the war and variants of concern created huge uncertainty over forecasts this year, Heathrow said.
“Aviation's recovery remains overshadowed by war and COVID uncertainty,” said Heathrow CEO John Holland-Kaye.
Heathrow said good bookings data indicated the summer season could return passenger numbers to 85% of pre-Covid levels, with the company planning to recruit 12,000 staff and reopen Terminal 4 in July.
But Holland-Kaye urged the Civil Aviation Authority not to slash investment in capital projects or operating costs in the H7 regulatory review to ensure Heathrow can meet returning demand.
“We need to ensure we are geared up to meet peak potential demand this summer and are relying on the CAA 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.”