The closure of Heathrow Airport on Friday has sent shockwaves across the global aviation industry, affecting hundreds of flights and potentially stranding over 145,000 passengers. The shutdown, caused by a fire at an electrical substation supplying the airport, has led to widespread cancellations and diversions, with the fallout expected to last for days, if not weeks, reports CNN.
Financial losses could reach hundreds of millions
Aviation expert Shukor Yusof, founder of Endau Analytics, estimated that the financial damage from the shutdown could be in the “hundreds of millions of pounds.” The disruption extends beyond airlines and passengers, impacting retailers, cargo firms, jet fuel suppliers, and local communities that rely on Heathrow for their livelihoods.
Challenges for airlines
Heathrow, the world’s fourth-busiest airport in 2023 with 83.9 million passengers, plays a crucial role in global travel. Airlines rely on precisely coordinated networks to position planes and crews efficiently. With this sudden disruption, dozens of carriers must now restructure operations to manage aircraft and staff placement.
British Airways, a major operator at Heathrow, has been forced to redirect inbound flights to alternative UK airports. The airline has advised passengers on cancelled flights not to travel to Heathrow until further notice.
Airline stocks take a hit
The impact of Heathrow’s closure has also been felt in financial markets. Shares of British Airways owner, International Airlines Group, dropped as much as 5% before recovering slightly. Lufthansa and Air France-KLM stocks also declined, while Australian airline Qantas closed 2.4% down.
Meanwhile, authorities and airlines are working to manage the disruption, but clearing the backlog of stranded passengers may take days or even weeks.