Heathrow’s CEO John Holland-Kaye, announcing the airport’s 2020 financial results, has said: "We can be hopeful for 2021, with Britain on the cusp of becoming the first country in the world to safely resume international travel and trade at scale."
The airport made a pre-tax loss of £2 billion in 2020 after passenger numbers fell by 72.7 per cent to 22.1 million, with more than half of those in the first two months of the year. Holland-Kaye said passenger numbers at these levels had not been seen since the 1970s but predicted this number would recover to 37.1 million in 2021.
Revenue for the year fell by 62 per cent to £1.2 billion but the airport reduced gross operating costs by nearly £400 million, reduced capital expenditure by £700 million and raised £2.5 billion in additional funding. The airport ended the year with £3.9 billion of liquidity, which it says will enable it to survive until 2023.
Holland-Kaye said, “Government policies over recent months have effectively closed borders. We have had no government support, other than furlough, and have not been given relief from business rates, unlike other airports, retail and hospitality businesses. The March Budget is the key opportunity for the Chancellor to support the sector by providing 100 per cent business rates relief, extending the furlough scheme and reversing the tourist tax.”
He added: “Getting aviation moving again will save thousands of jobs and reinvigorate the economy, and Heathrow will be working with the global travel taskforce to develop a robust plan underpinned by science and backed by industry. The Prime Minister will then have the unique opportunity to secure global agreement on a common international standard for travel when he hosts the G7 in June.”