Economy News

Losses continue to mount at Heathrow Airport

Sponsored

Since the outbreak, Heathrow airport has lost 3.4 billion pounds ($4.6 billion) and has continued to lose money through the first three quarters despite lifting health restrictions.

heathrow airport

The London hub reported an adjusted pre-tax loss of 1.1 billion pounds ($1.51 billion) in the first nine months of the year, more than a third higher than the loss in the same period last year.

During the first three quarters of the year, the group’s revenue also declined by -27% from the same period last year.

The number of passengers during the first three quarters of 2021 was down 46% from the same period last year.

Thanks to the lifting of travel restrictions and the easing of testing and procedures, however, the airport group recorded its first passenger growth in the third quarter of 2019.

A long way to go.

Over the summer vacation period, traffic has risen to 28% of its pre-pandemic levels (90% for freight). Nonetheless, it is not expected to return to its pre-pandemic level until 2026.

The London airport spoke of a long road ahead to recover from the pandemic that brought down air traffic. “Airports have very high fixed costs despite a 30% drop in operating costs,”. The London hub “continues to lose money,” Heathrow airport officials said.

Nevertheless, the group claims to have 4.1 billion pounds ($5.6 billion) in liquidity. It further stated that it would be able to “survive” until the airline industry recovered from the shock of the Covid-19 pandemic.

Several days before the opening of the COP26 international climate conference, the group is asking the British government to increase the mandatory sustainable fuel rate by 2050. It came after setting a requirement of at least 10% sustainable fuel by 2030.

For MetaNews.

Avatar

Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

Related Posts