Heathrow Airport warns war in Iran may cut passenger numbers

Heathrow Airport has warned that passenger numbers for the rest of the year are expected to be affected by the Iran war, as travellers continue to avoid the region amid the ongoing conflict.

The west London airport has had a spike in the number of people travelling through its four terminals so far this year, as it has “temporarily absorbed demand from elsewhere”.

A total of 18.9 million people travelled via Heathrow in the first three months of this year, marking a 3.7% increase compared with the same period last year.

This had a knock-on effect on Heathrow’s revenue, which rose by 2.3% to £844m in the first quarter of the year, driven by higher passenger numbers, increased food and beverage sales, and stronger demand for premium services.

“Passenger numbers for the rest of the year are likely to be impacted whilst there is significant uncertainty in the Middle East,” a spokesperson for Heathrow said.

It comes as airspace closures in the Middle East following the outbreak of the war on February 28 have had a major impact on air travel.

Around half a million passengers per day typically pass through airports in Dubai, Doha and Abu Dhabi, which serve as connecting hubs between Europe, Asia and Australia.

Although much of the Middle East’s airspace has since reopened, many travellers are continuing to avoid the region because of the conflict.

However, adjusted operating costs climbed by 6.5%, driven by higher wages and national insurance contributions, IT investment, and spending on passenger support.

Sally Ding, the airport’s chief financial officer, said Heathrow is currently “full” and ready to move forward with plans for a third runway, provided the right framework and government policy are in place.

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Meanwhile, jet fuel costs at London Heathrow and other UK airports have surged since the start of the war, mainly driven by the blockade of the Strait of Hormuz.

The UK imports roughly 65% of its jet fuel, with over 40% typically arriving via the Strait of Hormuz.

Airlines will be allowed to cancel flights weeks in advance without forfeiting take-off and landing slots at congested airports if they face shortages this summer.

Under the proposals, airlines could also consolidate services on routes with multiple daily departures to the same destination, allowing passengers to be rebooked onto similar flights while conserving fuel.

Transport Secretary Heidi Alexander said she was confident that most people travelling this summer would have an experience similar to last year.