Heathrow Airport Raises Passenger Forecasts But Expects 2022 to Stay Lossmaking

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By Joe Hope

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London’s Heathrow Airport said Tuesday that passenger numbers in April rose and increased its 2022 forecast, but cautioned that it expects to remain lossmaking given market unpredictability.

The airport–jointly owned by the Qatar Investment Authority, China Investment Corp., Spain’s Ferrovial SA and other investment companies–said it had 5 million passengers in the month, up from 4.4 million in March. Passenger demand recovery is expected to last throughout the summer, and Heathrow lifted its full-year forecast by 16% to 53 million passengers.

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However, Russia’s invasion of Ukraine, higher fuel costs, continued travel restrictions for key markets like the US and the potential for another coronavirus variant of concern creates uncertainty going forward, the airport said.

Given these factors, coupled with the Bank of England’s warnings, inflation is set to pass 10% and the UK is likely to slide into recession, it expects travel demand to reach 65% of prepandemic levels overall for the year.

Heathrow expects to remain lossmaking throughout the year and doesn’t forecast paying shareholders dividends in 2022.

Write to Joe Hoppe at [email protected]

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Credit: www.marketwatch.com /

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