HEATHROW FORECASTS PASSENGER AND PROFIT DECLINE DUE TO MIDDLE EAST CONFLICT

Heathrow Airport has forecast a decline in passenger numbers and profits this year, attributing the fall to the conflict in the Middle East. The airport said it expects passenger numbers to fall by 1.1 per cent to 83.6 million. Heathrow stated that the Iran war is affecting its financial projections. The airport is Europe's busiest airport by traffic volume.

Heathrow has been engaging with its regulator to discuss the costs associated with its planned third runway project. The airport said it is holding ongoing discussions with the regulator over the financial implications of the expansion scheme. The timing of these discussions coincides with the airport's reassessment of its revenue and passenger forecasts for the year ahead. The third runway project represents a significant capital investment for the airport.

Heathrow's revised forecasts reflect broader economic uncertainty in the aviation sector stemming from geopolitical tensions. The airport's statement indicates that Middle East instability is being factored into near-term business planning across the sector. Heathrow's engagement with regulators on runway expansion costs suggests ongoing negotiations over how the airport will fund and schedule the project. The airport will continue monitoring how the regional situation develops and its impact on passenger demand.