Heathrow flags tepid travel recovery until 2026

Britain's Heathrow Airport Ltd said on Tuesday (October 26) it was still reporting losses and does not expect air traffic to recover completely until at least 2026, even as the travel industry gathered steam in the third quarter after restrictions eased.

The London airport said passenger numbers in the third quarter recovered to 28% and cargo to 90% of pre-crisis levels, although it has lost 3.4 billion pounds, or $4.68 billion, cumulatively since the start of the global health crisis.

Heathrow, which last year lost its crown as Europe's busiest hub to Paris, has suffered heavy losses in the crisis and has since tried to claw back gains by raising its charges to airlines.

Last week, the UK aviation regulator said Heathrow will not be permitted to raise passenger charges by as much as it had wanted.

Airlines opposed the scale of the hike as the hub and carriers battle to recoup losses.

Heathrow said on Tuesday the Civil Aviation Authority's initial proposals don't go far enough to ensure investors receive a fair return.