Relations between airlines and airports nosedive as pandemic savages profits

Airlines and airports have been united in the face of adversity. The bosses of British Airways, Virgin Atlantic and Heathrow posed for photoshoots on an empty runway, held joint press conferences and met ministers together as they pushed to loosen travel restrictions and encourage people back into the skies. But now, the solidarity is over, with pandemic disruption dragging into a third year and aviation losses forecast to soar into the hundreds of billions of dollars. “A bleeding airport is music to my ears,” said Willie Walsh, the former head of British Airways who now runs the International Air Transport Association, the trade group of airlines, and is leading a campaign against higher airport charges. Although Walsh qualified his remarks by admitting some concern for struggling smaller airports, he added: “But for most of these big quasi-monopoly or monopoly airports, I don’t have sympathy.” Airlines, which typically pass landing charges straight on to passengers through ticket prices, desperately want lower fees to encourage people back into the skies through discounted fares as the financial strain on their balance sheets mounts. Iata has forecast the world’s airlines will lose another $11b this year, taking overall net losses since 2020 to more than $200b. The airlines argue that airport owners, often deep-pocketed long-term infrastructure investors, should be forced to share the pain. But many airports are instead pushing to raise their fees to help cover pandemic losses and invest in infrastructure. Airport bosses argue their businesses are constrained by strict regulations that control their pricing structures, meaning they cannot flex their prices up and down like airlines.<br/>