UK's Heathrow warns of leisure travel slowdown later this year
Britain's Heathrow Airport warned on Wednesday that a slowdown in leisure travel is likely later this year, bringing an end to the post-pandemic boom which has helped airline profits soar despite disposable incomes shrinking. Heathrow, the busiest hub in western Europe, reported pretax profit up 6% to GBP279m in the first six months of the year, on a 42% rise in passenger numbers to 37m. That number was driven by more flights to and from destinations worldwide, helped by the reopening of China and soaring demand for transatlantic travel. "Leisure demand has really defied gravity," Heathrow CE John Holland-Kaye said. Consumers have prioritised holiday spend over the last year, splashing pandemic savings even as rising inflation and interest rates have eaten into household budgets. Delta posted the highest quarterly earnings in its history in the June quarter. British Airways-owner IAG is due to report results on Friday. But the rush on bookings will tail off in the second half, Heathrow warned, citing the cost of living crisis as a "material headwind".<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-07-27/general/uks-heathrow-warns-of-leisure-travel-slowdown-later-this-year
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UK's Heathrow warns of leisure travel slowdown later this year
Britain's Heathrow Airport warned on Wednesday that a slowdown in leisure travel is likely later this year, bringing an end to the post-pandemic boom which has helped airline profits soar despite disposable incomes shrinking. Heathrow, the busiest hub in western Europe, reported pretax profit up 6% to GBP279m in the first six months of the year, on a 42% rise in passenger numbers to 37m. That number was driven by more flights to and from destinations worldwide, helped by the reopening of China and soaring demand for transatlantic travel. "Leisure demand has really defied gravity," Heathrow CE John Holland-Kaye said. Consumers have prioritised holiday spend over the last year, splashing pandemic savings even as rising inflation and interest rates have eaten into household budgets. Delta posted the highest quarterly earnings in its history in the June quarter. British Airways-owner IAG is due to report results on Friday. But the rush on bookings will tail off in the second half, Heathrow warned, citing the cost of living crisis as a "material headwind".<br/>
