Heathrow makes a loss even as passenger traffic takes off

Britain’s biggest and Europe’s largest airport recorded 16.9 million passengers in the first three months of the year

Passenger numbers are up at Heathrow Airport in west London. PA

Heathrow continued to make a loss in the first quarter, blaming fees set by the regulator as it posted a 74 per cent annual increase in passenger traffic.

Britain’s biggest and Europe’s busiest airport recorded 16.9 million passengers in the first three months of the year, a substantial increase over last year’s pandemic-affected numbers.

Yet it posted a £139 million ($173 million) adjusted loss, saying fees had been set "too low". It has launched an appeal against the passenger fees, which it had been ordered to lower for airlines using the UK airport.

Heathrow said it beat Paris, Frankfurt and Schiphol to retain its position as the world’s second busiest airport, after Dubai, for international travel.

In a statement, it said passengers rated Heathrow’s service ahead of its main EU rivals, with a “strong performance” during the half-term and Easter holidays.

“Our robust contingency plans kept the airport running smoothly throughout a period of industrial action over the Easter peak.

“Passengers can expect to travel as normal during the coronation and half-term peaks, regardless of further unnecessary strike action by Unite. We are working with partners on further improvements to service, such as Border Force’s successful trial of extending eGates to [10-year-olds and above] over Easter.”

The airport said it had made “steady progress” towards sustainability goals.

“We were pleased to be the first airport to achieve science-based validation from the SBTi for our 2030 carbon reduction goals,” it said.

And it said it had worked hard to connect the UK to global markets, and opened up connections to 10 Chinese cities as borders reopened there. Frequencies to Beijing and Shanghai will increase to twice daily before the summer.

The west London airport appealed to ministers to remove VAT on shopping for tourists, which will drive more spend in shops, restaurants and attractions across Britain to further drive passenger numbers.

Heathrow’s chief executive John Holland-Kaye said: “2023 has got off to a strong start, and I'm proud of the way colleagues are working together to deliver great passenger service every day.

“We are building our route network to connect all of Britain to the growing markets of the world – now we need the government to lure international visitors back to the UK by scrapping the ‘tourist tax’.”

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