Heathrow Airport Closure Causes Huge Losses

Before the incident, Heathrow Airport was expected to handle 1,351 flights with around 291,000 passengers on Friday. However, many planes were diverted to other airports in the UK and Europe, while many long-haul flights had to return to their origin.

Heathrow Airport from above. Photo: Konstantin Von Wedelstaedt

Several flights have begun landing at London's Heathrow Airport on Friday evening (March 21) after a fire at a power station paralyzed Europe's busiest airport for nearly a day. The incident caused chaos for thousands of passengers around the world.

British police said after an initial assessment that there were no signs that the incident was suspicious, but the investigation is still ongoing. The London Fire Brigade will focus on investigating the electricity distribution system to determine the exact cause.

Flights were diverted or turned back mid-flight due to Heathrow’s sudden closure. According to aviation experts, the last time Europe suffered such a large-scale disruption was in 2010, when an ash cloud from an Icelandic volcano caused 100,000 flights to be canceled.

Passengers stranded in London are scrambling to find alternative travel options, with many prepared to pay high prices to leave the UK as soon as possible. Hotel prices around Heathrow have skyrocketed, with some rooms costing up to $645 a night, five times the usual rate.

Heathrow handles nearly £200bn worth of goods each year, or around £543m a day. Major exports include salmon, books and pharmaceuticals, while popular imports include vegetables, flowers, plastics and perfumes.

According to the Centre for Economics and Business Research (CEBR), Heathrow contributes £4.7bn to the UK economy, or around £12.88m a day. This figure shows the damage the airport suffered after just one day of closure.

According to aviation expert Paul Charles, the direct costs to airlines and suppliers could be at least £20m due to: Stranded passengers (compensation, hotels, meals); Crew travel costs; Fuel and aircraft operating costs.

Airline companies have also seen their value plummet, with shares in IAG (which owns British Airways, Vueling and Iberia) down 2.34% on Friday afternoon, wiping £326m off its market capitalisation.

Cao Phong (according to CNA, Sky News)