Heathrow’s Shutdown Leaves Airlines Reeling with Costs

Heathrow Airport, Europe’s busiest airport by passenger numbers, was shut down in 2024 due to a fire at an electricity substation, causing widespread disruption to air travel. The closure had a significant impact on airlines that rely heavily on the hub, particularly those operating on thin margins.

The primary concern for airlines was ensuring the safety of flights already in the air, with most having designated alternate airports. However, the sheer volume of diversions at Heathrow quickly saturated the UK’s diversion capacity, forcing many flights to reroute overseas. The nature of Heathrow’s traffic also posed challenges, as it is a major hub for long-haul flights operated by wide-body aircraft.

Airlines have emergency plans in place, including dedicated crisis rooms and operations control centres, which were activated during the shutdown. Top management and operational departments held emergency meetings to make rapid decisions and minimise operational and financial impact.

The entire airline schedule was thrown into disarray, with planning and scheduling processes being restarted from scratch. This led to numerous flight cancellations, as airlines analysed each individual flight to determine the best course of action. The high costs involved, including passenger rebooking and accommodation expenses, further exacerbated the situation.

Heathrow’s shutdown left hundreds of thousands of passengers stranded or unable to travel. While airlines are not liable for compensation due to the “force majeure” nature of the incident, the other costs quickly mounted up, leading to expected hits on profits. The airport was back up and running at full capacity sooner than anticipated, but the impact will be felt for some time to come by airlines and other businesses affected by the shutdown.

Source: https://theconversation.com/flight-chaos-stranded-passengers-and-lost-profits-how-airlines-manage-crises-like-the-heathrow-shutdown-252936