An easing of travel restrictions throughout July resulted in a 74% year-on-year upswing in passengers using Heathrow.
More than 1.5 million passengers used the London hub last month – the highest monthly level since the start of the pandemic in March 2020.
Despite signs of recovery, passenger numbers were still down more than 80% on pre-pandemic July 2019, as barriers to travel remain.
North American passenger numbers grew by nearly 230% year-on-year with New York JFK reclaiming the top spot as Heathrow’s most popular route ahead of JetBlue entering the market this week.
Heathrow said: “With fully vaccinated US visitors now able to travel to the UK without the need to quarantine, the joint UK/US travel taskforce must capitalise on the UK’s world-leading vaccine rollout and reach a reciprocal agreement for fully vaccinated UK travellers.
“Ministers committed to reducing testing costs over three months ago, however, the UK still stands as an outlier with Europe slashing their prices and in some cases, subsiding them.
“Meanwhile, the cost of testing in the UK remains prohibitive for many, as industry calls for VAT to be scrapped, alongside the use of cheaper lateral flow for low-risk destinations. This will keep people safe and will avoid travel becoming the preserve for the wealthy.
“As more countries hit their vaccine rollout milestones whilst maintaining low infection rates, the reopening of vital trading links such as Canada and Singapore is critical for British business.
“Severed trade links must be restored as soon as the data allows, and UK government should not delay these vital decisions.”
Chief operating officer Emma Gilthorpe added: “Finally, some blue skies are on the horizon, as travel and trade routes slowly reopen.
“The job though is far from complete. Government must now capitalise on the vaccine dividend and seize the opportunity to replace expensive PCR tests with more affordable lateral flow tests.
“This will ensure travel remains attainable for hardworking Brits, desperate for well-earned getaways and keen to reunite with loved ones before the summer travel window closes.”