Heathrow Forecasts 1.1% Passenger Drop and Lower Profits This Year While Citing Trade Gains from Third Runway

Heathrow expects passenger numbers to fall 1.1 percent to 83.6 million this year and adjusted profits to drop to 1.88 billion pounds from 2.03 billion pounds last year. The airport attributed the passenger decline to the ongoing conflict in the Middle East, which it said is exerting downward pressure on traffic volumes.

Passenger numbers rose 0.7 percent to 32.8 million in the year to the end of May, partly because more travelers used Heathrow for connections while other hubs faced disruptions from the regional conflict.

Heathrow also said it has been engaging closely with the Civil Aviation Authority on the cost of its third-runway plan. The Department for Transport released documents this month showing that a third runway would boost UK GDP by up to 0.05 percent, a figure 90 percent below the prior 0.5 percent estimate, while the overall trade-off could cost the UK as much as 62.5 billion pounds.

Analysis prepared for the Department for Transport by Aecom found that the runway could have major adverse effects on the health and wellbeing of up to 3 million people living nearby through impacts on noise, air quality, housing, education, healthcare, open space and transport.

In May the airport's new chair began talks with airlines and local landowner Surinder Arora to address disputes over the project. The spokesperson added that expansion plans are supported by businesses and trade unions for the jobs and prosperity they would create.