REG - Heathrow Heathrow Finance PLC Heathrow Funding Ltd - Business and traffic commentary July 2021
07.00 11th August 2021
Long road to recovery starts as travel restrictions finally relax
· The further easing of travel restrictions throughout July resulted in a 74% upsurge in passengers compared with July 2020. With consumer confidence on the rise, over 1.5 million travellers passed through Heathrow last month, marking the highest monthly passenger numbers since March 2020. The relaxation in rules has provided a much-needed boost to the UK travel industry, and enabled people across Britain to look forward to a more normal summer reuniting with family and friends abroad.
· North American passenger numbers grew by nearly 230% YoY, and New York JFK reclaimed the top spot as Heathrow's most popular route. Later this week Heathrow is set to further increase its transatlantic offering, as it welcomes American carrier JetBlue. 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.
· Despite signs of recovery, passenger numbers are still down over 80% on pre-pandemic July 2019 as barriers to travel remain. 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 the UK Government should not delay these vital decisions.
· Heathrow received triple recognition at the 2021 Skytrax World Airport Awards. Heathrow was voted "Best Airport in Western Europe", secured "World's Best Airport in 20-25 million passenger category" and was the only UK airport to win the Covid-19 Airport Excellence Award, which recognises the stringent health, hygiene and safety protocols introduced in light of COVID.
Heathrow Chief Operating Officer, Emma Gilthorpe said: "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."
Traffic Summary
July 2021
Terminal Passengers
(000s)Jul 2021
% Change
Jan to
Jul 2021% Change
Aug 2020 to
Jul 2021% Change
Market
UK
167
202.3
636
-37.1
1,085
-64.7
EU
640
32.7
1,871
-65.2
4,549
-73.2
Non-EU Europe
124
27.5
433
-64.5
995
-72.4
Africa
80
294.3
440
-47.0
759
-67.1
North America
232
229.9
705
-79.2
1,174
-89.8
Latin America
36
409.8
90
-72.5
194
-78.4
Middle East
134
78.3
563
-68.8
1,222
-76.7
Asia / Pacific
97
65.1
622
-73.4
1,192
-83.2
Total
1,511
74.3
5,359
-67.1
11,170
-78.0
Air Transport Movements
Jul 2021
% Change
Jan to
Jul 2021% Change
Aug 2020 to
Jul 2021% Change
Market
UK
1,743
139.4
7,338
-28.4
12,252
-56.2
EU
6,918
27.3
23,615
-54.5
54,091
-60.9
Non-EU Europe
1,139
21.2
4,929
-56.7
10,480
-64.2
Africa
658
86.4
4,087
-9.4
7,036
-35.1
North America
2,521
36.9
16,311
-31.5
27,176
-53.7
Latin America
299
74.9
1,067
-42.0
2,188
-49.2
Middle East
1,372
36.9
8,259
-20.4
14,525
-38.1
Asia / Pacific
1,729
18.9
12,007
-21.7
21,330
-38.8
Total
16,379
37.4
77,613
-40.0
149,078
-54.5
Cargo
(Metric Tonnes)Jul 2021
% Change
Jan to
Jul 2021% Change
Aug 2020 to
Jul 2021% Change
Market
UK
19
675.1
125
-40.0
160
-64.9
EU
10,317
71.7
71,155
86.7
109,143
41.3
Non-EU Europe
4,954
38.1
38,862
86.3
64,060
43.0
Africa
5,535
12.7
46,162
27.9
79,246
7.6
North America
39,843
43.3
264,212
15.0
421,068
-8.1
Latin America
2,261
-15.3
10,846
-38.4
26,994
-31.9
Middle East
18,672
1.2
128,947
7.0
220,096
-4.9
Asia / Pacific
33,746
35.2
220,052
25.0
364,287
-0.0
Total
115,347
30.5
780,362
22.1
1,285,054
-0.4
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