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Business & Finance

Heathrow charging departing passenger extra to cover pandemic costs

  • The Heathrow airport in London is charging an extra 8.90 pounds ($12.40) to departing passengers to cover costs of falling air travel due to the COVID-19 pandemic.
Published March 1, 2021
Source: Reuters
Source: Reuters

The Heathrow airport in London is charging an extra 8.90 pounds ($12.40) to departing passengers to cover costs of falling air travel due to the COVID-19 pandemic.

The Heathrow airport suffered a lot as a result of the pandemic. Last week, the airport posted that it had incurred a loss of 2 billion pounds in 2020 because passenger numbers fell by 73 percent due to COVID-19. Falling demand for air travel essentially translated into the airport not being able to cover the costs of providing some services.

Heathrow is permitted to charge this new tariff by UK's aviation regulator. While Heathrow makes zero profit from utilities, baggage and check-in services, it is allowed to cover costs for such activities, according to set protocols.

This new charge, better known as the Airport Cost Recovery Charge, is due to be imposed for the rest of this year, according to reports by the Bloomberg.

However, the Civil Aviation Authority is also considering if Heathrow should also be permitted to increase the fees it charges airlines on a limited basis prior to a longer-term regulatory settlement that starts next year.

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