Heathrow retained its position as Europe’s busiest airport and second in the world for international travel in the first quarter of the year.
The London hub handled 16.9 million passengers in the three months to March 31, beating Paris, Frankfurt and Amsterdam Schiphol. The total was up from 9.7 million in the equivalent period in 2022.
But Heathrow remained loss-making with a pre-tax deficit of £139 million, reduced from £223 million the in same three months last year. Revenue rose by 58% year-on-year to £814 million.
The loss for the three months was due to a “revenue allowance” in the Civil Aviation Authority’s settlement on future charges to airlines being set too low, the airport argued.
Heathrow and airlines have lodged rival appeals against the settlement to the Competition and Markets Authority.
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The airport insisted that “robust” contingency plans kept it running smoothly throughout a period of industrial action by security staff over the Easter peak.
Heathrow added: “Passengers can expect to travel as normal during the Coronation and half term peaks, regardless of further unnecessary strike action by Unite.
“We are working with partners on further improvements to service, such as Border Force’s successful trial of extending e-gates to 10-plus year-olds over Easter.”
Meanwhile, frequencies to Beijing and Shanghai will increase to twice daily before the summer as connections to 10 cities in China open up as borders reopen following the pandemic.
Heathrow added: “We urge ministers to make the UK more competitive for overseas visitors versus the EU by removing the ‘tourist tax’ of VAT on shopping which will drive more spend in shops, restaurants and attractions across Britain.”
The airport also called on the government “to move faster to bring production of Sustainable Aviation Fuel onshore, increasing energy security and creating skilled green jobs in levelling up areas”.
Outgoing chief executive John Holland-Kay said: “2023 has got off to a strong start, and I’m proud of the way colleagues are working together to deliver great passenger service every day.
“We are building our route network to connect all of Britain to the growing markets of the world – now we need the government to lure international visitors back to the UK by scrapping the ‘tourist tax’.”
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