Skip to content

Heathrow Airport reports $2.9 billion loss as passenger numbers drop to 1970s levels

Feb. 24, 2021
3 min read
Heathrow Airport reports $2.9 billion loss as passenger numbers drop to 1970s levels
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

The travel and aviation industries have been at the center of those most affected by the coronavirus pandemic. And, included in that grouping are airports — especially some of the world’s largest, including London’s Heathrow.

On Wednesday, the U.K.’s largest airport reported a £2 billion (about $2.9 billion) annual loss as passenger demand and restrictions caused the airport’s numbers to drop to levels last seen in the 1970s.

Sign up to receive the daily TPG newsletter for more airline and industry news!

In the airport’s report, it said that the number of passengers who traveled to, from or through the airport totaled just 22.1 million in 2020, and more than half of that number traveled in January and February 2020, before the coronavirus pandemic took hold. In 2019, almost 81 million passengers transited through Heathrow.

After one of the “most challenging years” of its 25-year history, there is a light at the end of the tunnel, according to CEO John Holland-Kaye. However, the airport said that it may not be able to continue if its passenger numbers remain low.

That said, after cutting gross operating costs, reducing capital expenditure and raising funds, it has £3.9 billion of liquidity — enough to see the airport through until 2023.

Sign up for our daily newsletter

Related: All flights from Heathrow Airport are now nearly £10 more expensive

But it’s pressuring Chancellor Rishi Sunak to include 100% business relief rates and an extension of the furlough scheme in his budget. The budget is set to be delivered on March 3.

On Monday, Prime Minister Boris Johnson outlined the country’s roadmap out of lockdown. If all goes according to plan and there are no delays, all social contact restrictions will be lifted by June 21. International travel could resume as soon as May 17, though a new version of the Global Travel Taskforce will relay its findings on if that will be possible by April 12.

“For the aviation sector, we can start to plan ahead for May 17 to make sure we’ve got the people and the planes in place so that we can get, not just people on their holidays, but also start to get British businesses moving again,” Holland-Kaye told the BBC.

Since the start of the pandemic, the airport has been at the forefront of calls to the government to bring travel back. Holland-Kaye had encouraged the government to implement a testing requirement for arrivals, a move that the government adapted 10 months into the pandemic.

Airlines and holiday providers have signaled a positive return to travel in 2021 and beyond. On Tuesday, several U.K. companies showed signs of pent-up travel demand. EasyJet holidays said, for example, that bookings surged overnight by as much as 600% following Johnson’s roadmap out of lockdown announcement.

Related: Flight and holiday home bookings skyrocket as much as 600% after UK roadmap announcement

Featured image by A passenger with luggage is seen at London Heathrow Airport in west London on February 14, 2021 . - A new 10-day hotel quarantine regime for British residents returning to the UK from 33 coronavirus variant hotspots begins on February 15, despite concern from the country's busiest airport Heathrow that "significant gaps" remain in the plans. (Photo by JUSTIN TALLIS / AFP) (Photo by JUSTIN TALLIS/AFP via Getty Images)
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

TPG featured card

NEW BENEFIT! TAKEOFF15!
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
3 / 5
Go to review

Rewards

1 - 3X points
3XEarn 3X Miles on Delta purchases and purchases made directly with hotels.
2XEarn 2X Miles at restaurants worldwide, including takeout and delivery in the U.S. and at U.S. supermarkets.
1XEarn 1X Miles on all other eligible purchases.

Intro offer

Earn 90,000 Bonus Miles50,000 Bonus Miles
Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.

Annual Fee

$250

Recommended Credit

670-850
Excellent/Good
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Why We Chose It

Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.

Pros

  • Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
  • Receive a Domestic Main Cabin round-trip companion certificate each year
  • Statement credit for TSA PreCheck/Global Entry fee (up to $100)
  • First checked bag free

Cons

  • Doesn't make sense if you don't fly Delta
  • SkyMiles aren't the most valuable airline currency
  • Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
  • New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
  • Earn 1X Mile on all other eligible purchases.
  • Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
  • Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Apply for Delta SkyMiles® Platinum American Express Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
3 / 5
Go to review

Rewards Rate

3XEarn 3X Miles on Delta purchases and purchases made directly with hotels.
2XEarn 2X Miles at restaurants worldwide, including takeout and delivery in the U.S. and at U.S. supermarkets.
1XEarn 1X Miles on all other eligible purchases.
  • Intro Offer
    Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.

    Earn 90,000 Bonus Miles
    50,000 Bonus Miles
  • Annual Fee

    $250
  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    670-850
    Excellent/Good

Why We Chose It

Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.

Pros

  • Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
  • Receive a Domestic Main Cabin round-trip companion certificate each year
  • Statement credit for TSA PreCheck/Global Entry fee (up to $100)
  • First checked bag free

Cons

  • Doesn't make sense if you don't fly Delta
  • SkyMiles aren't the most valuable airline currency
  • Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
  • New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
  • Earn 1X Mile on all other eligible purchases.
  • Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
  • Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees