UK’s Heathrow Airport records £2bn loss
Britain’s Heathrow Airport has recorded a loss of 2 billion pounds ($2.8 billion) caused by a collapse in passenger numbers last year.
Consequently, it has said that digital health checks will be vital to a recovery in foreign travel from the COVID-19 pandemic.
The UK government earlier this week said trips abroad could restart in mid-May as its vaccination campaign kicks in, sparking a surge in holiday bookings.
It is also looking into a digital health passport or app to help ease restrictions, while conceding the benefits have to be weighed against potential risks to civil liberties.
But Heathrow Chief Executive John Holland-Kaye said digital technology, and international agreements, would be vital to reviving a travel industry on its knees.
“It’s absolutely critical and that’s one of the main things that government needs to work on,” he said, when asked about a digital health app.
At present, paper checks on COVID-19 test results and passenger locator forms take 20 minutes per traveller at Heathrow, making travel near impossible should passenger numbers rise from current low levels.
The Chief Executive Officer of Heathrow, John Holland-Kaye further said, “We can be hopeful for 2021, with Britain on the cusp of becoming the first country in the world to safely resume international travel and trade at scale.
“2020 has been one of our most challenging years – but despite £2bn of losses and shrinking to passenger levels we haven’t seen since the 70s, I am hugely proud of the way that our colleagues have kept our passengers safe and the UK’s hub airport open for vital supplies throughout.
“Getting aviation moving again will save thousands of jobs and reinvigorate the economy, and Heathrow will be working with the Global Travel Taskforce to develop a robust plan underpinned by science and backed by industry.
“The Prime Minister will then have the unique opportunity to secure a global agreement on a common international standard for travel when he hosts the G7 in June.
“In the meantime, we need next week’s Budget to support aviation’s recovery by extending furlough and providing 100% business rates relief.”
Britain’s biggest airport said it was “very likely” people would be able to go on their summer holidays, but expects passenger numbers will take time to recover.
The airport, west of London, is forecasting 25 million passengers in the second half of the year, meaning it would be operating at about 50% capacity.
Heathrow, owned by Spain’s Ferrovial, the Qatar Investment Authority, China Investment Corp and others, last year lost its title as Europe’s busiest airport to Paris after its flight schedules shrank more than those of its rivals.
Passenger numbers plunged 73% to 22 million people last year, with half of those travelling during January and February, before the pandemic shut down global travel in March.
Heathrow said it had 3.9 billion pounds of liquidity, giving it sufficient resources to keep going with low levels of traffic until 2023, despite the 2 billion loss before tax for 2020.
The airport urged the government to provide business tax breaks for big airports, something only available to smaller airports so far, and to extend the furlough job support scheme to help it financially before the recovery takes off.
($1 = 0.7044 pounds)
Source: Reuters
