Heathrow expects fall in passengers and profits this year because of Iran war

Heathrow has said that passenger numbers and profits will fall this year because of the conflict in the Middle East. Europe’s busiest airport said it expects a 1.1% decline in the total number of passengers to 83.6 million, as the impact of the Iran war affects global air travel. “The ongoing conflict in the Middle East is putting notable downward pressure on traffic,” it said in its latest investor report. “This reflects the risk that continued volatility in the Middle East could dampen traffic volumes, with impacts extending beyond the region to global travel demand over the remainder of the year.” Heathrow said there had been a 0.7% increase in passenger numbers, to 32.8 million, in the year to the end of May, driven by factors including an increase in the number of passengers using the airport to connect to flights as other major hubs were affected by the regional conflict. Heathrow also said it expects profits to decline by £147m year on year, and £60m compared with its last forecast, published in December. The company said it had been “engaging closely” with its regulator, the Civil Aviation Authority, to discuss the cost of its plan to build a third runway. Earlier this month the Department for Transport released documents estimating that the economic boost from a Heathrow third runway could be a tiny fraction of previous estimates . …