Heathrow Airport Profit Forecast Slashed by $150 Million Amid Middle East Travel Slump
The London hub attributes the revised earnings outlook to decreased passenger traffic resulting from the ongoing conflict in the Middle East.
Heathrow Airport has revised its annual profit forecast downward by approximately $150 million, citing a significant drop in travel to and from the Middle East due to the ongoing conflict in the region. The airport stated that the war is exerting "notable downward pressure on traffic," leading to reduced passenger number and earnings projections for the year.
According to Heathrow, passenger numbers for travel to the Middle East have fallen by 25%. The airport now anticipates serving between 80.1 million and 83.6 million passengers this year, a decrease from the record 84.5 million passengers in the previous year. This revised forecast represents a $147 million reduction in expected profits compared to 2025 and a $60 million shortfall from projections made in December, prior to the escalation of the conflict.
Heathrow's earnings are now expected to be just under $1.9 billion. The airport highlighted the Middle East's strategic location as a transit hub connecting Europe, Asia, and Africa, noting that the conflict has disrupted flight routes and significantly impacted global aviation. The revised financial outlook reflects these challenges and the airport's adaptation to the current geopolitical climate.