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Heathrow Airport has indicated that the ongoing conflict in Iran is likely to impact passenger traffic for the remainder of the year. During the first quarter, the airport recorded 18.9 million travelers passing through its four terminals, representing a 3.7% increase compared to the same period last year. This growth was attributed to Heathrow temporarily accommodating demand usually served by other locations.
The airport’s recent trading update highlighted concerns over the uncertainty in the Middle East, stating that passenger numbers are expected to be affected as long as the situation persists. Since the outbreak of the war on 28 February, the closure of airspace over the region has significantly disrupted air travel patterns. Key hubs in Dubai, Doha, and Abu Dhabi, which support connecting flights between Europe, Asia, and Australia, typically handle around half a million passengers daily.
Although much of the Middle Eastern airspace has reopened, many travelers remain hesitant to use routes that pass through the area due to fears related to the conflict. Despite these challenges, Heathrow saw its revenue rise by 2.3% year-on-year in the first quarter, reaching £844 million. Growth was driven by increased passenger numbers as well as higher sales in food, beverages, and premium services. However, adjusted operating expenses also rose by 6.5%, influenced by higher payroll costs, national insurance contributions, IT investments, and passenger support expenses.
Sally Ding, Heathrow’s chief financial officer, emphasized that the airport is currently operating at full capacity. She also confirmed the airport’s readiness to move forward with plans for a third runway, provided that the appropriate regulatory framework and government policies are established
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