Heathrow Airport says passenger numbers were up 74% during the first three months of the year, compared to the same period last year.
The airport – Europe’s busiest – welcomed 16.9 million passengers, beating Paris, Frankfurt and Schiphol.
But it remains loss-making, with adjusted losses of £139m in the first financial quarter, and it said there is unlikely to be any dividends for shareholders in 2023.
Heathrow blamed this on the revenue allowance under the Civil Aviation Authority (CAA) settlement – which caps the average charge levied against airlines per passenger – which it said was “set too low”.
Charges are paid by airlines but are generally passed on to passengers in air fares.
The airport has asked competition regulator the Competition and Markets Authority (CMA) to review the CAA’s decision.
Chief executive John Holland-Kaye, who recently announced his intention to step down from the role, said: “2023 has got off to a strong start, and I’m proud of the way colleagues are working together to deliver great passenger service every day.
“We are building our route network to connect all of Britain to the growing markets of the world – now we need the government to lure international visitors back to the UK by scrapping the ‘tourist tax’.”
It echoes similar calls from Burberry chairman Gerry Murphy earlier this week, when he described the axing of VAT refunds for tourists as a “spectacular own goal” that had made Britain the “least attractive” shopping destination in Europe.
Read more:
Heathrow ‘considering next steps’ as airlines secure victory on passenger charges
‘Inevitable disruption’ for King’s coronation as 1,400 Heathrow staff strike for eight days in May
Woman forced to fly home after ‘lifeline’ wheelchair damaged during flight
In its financial results statement, Heathrow said “robust contingency plans” kept the airport running smoothly during the industrial action seen in the Easter peak period.
“Passengers can expect to travel as normal during the coronation and half-term peaks, regardless of further unnecessary strike action by Unite,” it added.
Some 1,400 airport security guards are expected to stage eight strikes in a dispute over pay, including during the coronation.
Meanwhile, new routes have opened to Northern Ireland and Scotland, and also China following the easing of COVID-19 restrictions there.
There will be an increase in flights to Beijing and Shanghai – with two flights daily before the summer.
