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Heathrow warns of a more “challenging” market for transatlantic flights caused by US economic uncertainty, as Britain’s biggest airports say they see “early signs of softness” on business routes.
The airport, Europe’s busiest airport, said on Friday there was “overflowing uncertainty” over transatlantic demand.
Investor updates are the latest indications of President Donald Trump’s trade war and rising consumer tensions over the country’s economic outlook. This year, warnings from several major airlines followed by warnings about slowing demand from US travellers. Many have delayed holiday bookings and are beginning to cut back plans.
Heathrow said early weaknesses in the US routes used by business travelers appeared to be related to “economic uncertainty over geopolitical reasons,” but leisure routes were better maintained.
He added that compared to 2024, passenger and cargo volumes on North American routes had risen during the first five months of the year, but the market has become “more difficult” due to the effects of “economic uncertainty across North America.” “We maintain close viewing on traffic trends,” the airport said.
He said passenger growth for the first five months of this year was driven by growth in routes to and from Latin America, the Middle East and Asia-Pacific.
That growth was closed despite Heathrow’s nearly closure on March 21, after a fire at a nearby power engine shut down power to the airport.
The statement said the airport is implementing 28 recommendations in a report on the incident by former Transport Secretary Ruth Kelly.
Heathrow said Friday it expects annual revenue to rise 1.4% year-on-year.
However, it also said it expects costs to increase compared to last year. As a result, Heathrow said adjusted revenue before interest, taxes, depreciation and amortization is expected to fall 3% year-on-year.
