TIDM10FX TIDM88BX

RNS Number : 4249E

Heathrow

11 March 2022

07.00 11(th) March 2022

Headwinds and slow traffic growth create an uncertain environment for aviation this year

-- Overall passenger numbers last month remained nearly 50% down on pre-pandemic levels with only 2.8 million passengers travelling through the UK's hub airport during February, 15% below forecast

-- 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 we serve. While we hope that these will be removed, we also face 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 the 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 we are putting passengers first by 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. We are 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 5-year settlement. We have proposed a plan to invest in the things our passengers and airlines tell us 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. We are doing the right thing for consumers and just getting on with delivering this plan, relying on the CAA not to slash investment in capital projects or operating costs, which 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."

 
 Traffic Summary 
 
 February 2022 
 
 Terminal Passengers                                                                        Mar 2021 
  (000s)                                                         Jan to                           to 
                                      Feb                           Feb                          Feb 
                                     2022   % Change               2022   % Change              2022   % Change 
 Market 
=====================  ==================  =========  =================  =========  ================  ========= 
 UK                                   201      297.5                390      261.2             2,050      138.1 
 EU                                   889      653.4              1,580      417.9             8,533       83.5 
 Non-EU Europe                        282      653.8                503      537.7             1,961       96.2 
 Africa                               196      258.6                379      191.5             1,290       88.8 
 North America                        501     1054.1              1,051      711.9             4,259      186.7 
 Latin America                        118     2457.4                244     1476.2               641      183.2 
 Middle East                          421      634.7                788      315.0             2,899      109.0 
 Asia / Pacific                       256      168.5                528      190.3             2,085       47.2 
 
 Total                              2,863      520.9              5,462      379.7            23,717      102.6 
---------------------  ------------------  ---------  -----------------  ---------  ----------------  --------- 
 
 
 Air Transport                                                                              Mar 2021 
  Movements                                                      Jan to                           to 
                                      Feb                           Feb                          Feb 
                                     2022   % Change               2022   % Change              2022   % Change 
 Market 
=====================  ==================  =========  =================  =========  ================  ========= 
 UK                                 1,710      184.5              3,693      165.9            19,518       95.8 
 EU                                 7,639      383.2             15,375      275.2            83,836       51.1 
 Non-EU Europe                      2,149      392.9              4,325      307.3            17,696       62.8 
 Africa                             1,035       97.9              2,079       81.1             8,817       45.8 
 North America                      3,472       73.0              7,750       95.5            38,559       49.0 
 Latin America                        564      548.3              1,212      441.1             4,145       86.1 
 Middle East                        1,631       70.3              3,453       51.4            18,216       32.0 
 Asia / Pacific                     1,874       17.7              4,241       30.5            23,957       15.3 
 
 Total                             20,074      157.9             42,128      141.9           214,744       48.0 
---------------------  ------------------  ---------  -----------------  ---------  ----------------  --------- 
 
 
                                                                                            Mar 2021 
                                                                 Jan to                           to 
 Cargo                                Feb                           Feb                          Feb 
  (Metric Tonnes)                    2022   % Change               2022   % Change              2022   % Change 
 Market 
=====================  ==================  =========  =================  =========  ================  ========= 
 UK                                     3      -91.4                 14      -69.7               187       -5.1 
 EU                                 9,666       -3.3             17,634       -1.1           121,000       49.2 
 Non-EU Europe                      3,092      -48.2              7,076      -37.1            63,435       24.4 
 Africa                             7,416       -1.1             15,664        7.6            78,704       12.9 
 North America                     43,524       30.9             81,614       33.8           502,353       40.6 
 Latin America                      2,892      151.7              5,604      199.5            27,223       -3.5 
 Middle East                       16,086        0.7             32,450       -5.7           226,670       10.0 
 Asia / Pacific                    25,845      -10.6             59,505        7.0           406,356       29.0 
 
 Total                            108,524        5.6            219,562       11.7         1,425,930       28.6 
---------------------  ------------------  ---------  -----------------  ---------  ----------------  --------- 
 
 
 

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March 11, 2022 02:00 ET (07:00 GMT)

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