Heathrow Airport, Britain’s largest travel hub, was shut down on Friday due to a fire at an electrical substation supplying the airport, causing widespread disruption to global air travel. The chaos is expected to last for days or even weeks, potentially costing the airline industry hundreds of millions of dollars.
According to aviation expert Shukor Yusof, founder of Endau Analytics, the financial losses could be in the “hundreds of millions of pounds”. Airlines are facing significant challenges in repositioning aircraft and staff, as they rely on precisely coordinated networks to ensure planes and crews are in the right place at the right time.
The impact is not limited to airlines and travelers. Entities such as retailers, cargo firms, jet fuel suppliers, and surrounding communities that depend on the airport for their livelihoods will also be affected. Airlines are advising passengers to check their travel options and providing alternative arrangements.
Shares of airlines operating out of Heathrow plummeted on Friday, with British Airways owner International Airlines Group sinking 5% and Lufthansa falling 1.6%. Compensation for travelers is likely to be the largest immediate cost for the airline. Airlines are working to mitigate the impact of the airport closure and provide updates to affected passengers.
Source: https://edition.cnn.com/2025/03/21/business/heathrow-airport-closure-disruption-losses-hnk-intl/index.html