Heathrow’s passenger numbers fell to 19.4 million last year – the lowest since 1972.
It was the only European hub to see a reduction in traffic in 2021 “due to tighter travel restrictions than EU countries”, said the airport.
Despite £870 million of savings over the last two years, cumulative losses during the pandemic have risen to £3.8 billion because of lower passenger numbers and high fixed costs.
The UK’s biggest airport recorded a pre-tax loss of £1.79 billion for 2021, following a £2 billion loss in 2020, when it handled 22.1 million passengers.
However, it predicts strong summer for outbound tourism and will reopen Terminal 4 by July.
The airport expects to meet its 2022 target of 45.5 million passengers but warns that inbound tourism and business travel remain “key challenges”.
In a statement about its annual results, it said: “Removing testing restrictions in the UK has boosted outbound tourism demand, but inbound tourism and business travel are suppressed due to testing in other countries.
“63% of our markets retain some form of travel restriction or testing requirements, and government responses to Omicron show how uncertain broader travel demand remains.
“We don’t expect travel to return to pre-pandemic levels until all restrictions have been removed, passengers can travel with no checks and are confident they will not be reimposed.”
John Holland-Kaye, Heathrow chief executive, said: “While 2021 was the worst year in Heathrow’s history, I am very proud of the way that colleagues focussed on passengers, and we were able to maintain our position as one of the top 10 airports in the world for service.
“Demand is now starting to recover and we are working closely with airlines to scale up our operations.
“We have outlined an investment plan for the next five years which meets the needs of passengers, drives fast traffic recovery and incentivises investment in a critical national asset, while keeping the increase in ticket prices below 2% despite significantly fewer passengers.
“I am anxious that the CAA will undercook the investment needed to avoid the return of ‘Heathrow hassle’ with longer queues and delays.”
Photo credit: David Parry/PA Wire