Heathrow saw slow traffic growth in February
Overall passenger numbers at Heathrow Airport in February, remained nearly 50% down on pre-pandemic levels, with only 2.8 million passengers travelling through the airport last month, 15% below forecast.
Above:
Heathrow's Terminal 5.
Courtesy Heathrow Airport
Outbound leisure demand is recovering strongly and countries are starting to remove travel restrictions. However demand from 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 Heathrow serves.
While Heathrow hopes that these will be removed, it also faces headwinds from 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 passenger forecasts this year
Based on the strength of outbound leisure bookings being reported by airlines, peak days in the summer holidays could be very busy, at up to 85% of pre-pandemic levels. 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 Heathrow is 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. Heathrow is particularly concerned over Border Force’s ability to scale up to meet demand
The CAA’s final decision on H7 is expected later this year, almost a year into a five-year settlement. Heathrow have proposed a plan to invest in the things its passengers and airlines tell it 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. Heathrow are delivering this plan, whilst relying on the CAA not to slash investment in capital projects or operating costs, which it says 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 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."