Heathrow remains loss-making despite rise in passenger numbers
Heathrow airport has said it is still loss-making, even as it continues to be Europe’s busiest airport, welcoming almost 17 million passengers in the first three months of the year.
The airport also said that passengers would be able to “travel as normal” during the peak getaway period around the coronation of King Charles III, taking place on 6 May, despite a fresh planned strike by security staff.
Releasing its financial results for the first three months of the year, the airport said it had not yet returned to profit after the coronavirus pandemic, and reported an adjusted pre-tax loss of £139m for the first quarter. It is not forecasting paying any shareholder dividends in 2023.
Heathrow is blaming the regulator for the level at which it has set its annual price cap for the amount it can charge airlines for using the airport for preventing it from increasing its earnings.
The Civil Aviation Authority (CAA) is responsible for setting the amount Heathrow can charge each airline customer. The current level for 2023 means the average maximum per-passenger fee remains at £31.57 this year. It will, however, drop to £25.43 in 2024, and stay broadly flat until the end of 2026.
Heathrow called this cap “too low” and said it had appealed against the CAA’s settlement to the competition watchdog, the Competition and Markets Authority.
The CAA has previously said its decision could contribute to lower fares for passengers in the coming years.
About 1,400 security officers at Heathrow, who are members of the Unite union, plan to strike for a further eight days in May in a dispute over pay, after industrial action taken over Easter.
Unite has previously said the strike would cause “inevitable disruption and delays” at a time when people
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