Heathrow Airport reported a 90,000 decrease in passenger numbers on routes affected by a £10 fee per person government scheme. The airport criticized the electronic travel authorization (ETA) system, introduced by the Conservative government in November 2023, as detrimental to its hub competitiveness.
The ETA, costing £10, is required for nationals from Qatar, Bahrain, Kuwait, Oman, the UAE, Saudi Arabia, and Jordan. This scheme will expand globally this autumn, with implementation for EU, EEA, and Swiss nationals starting early next year.
Heathrow highlighted that since the ETA’s introduction, it has seen a significant decline in transfer passengers from the seven affected countries, impacting its competitive edge. The airport has urged the government to reconsider the inclusion of airside transit passengers to boost competitiveness and support UK economic growth.
The ETA system, similar to the US ESTA system, mandates travelers to apply and pay the fee before departing. It applies to direct flights and those using UK airports for over two hours to connect to other flights. Heathrow had previously expressed concerns about the charge affecting passenger numbers and argued for exemptions for transiting passengers.
The government initially rolled out the ETA for Qatari nationals in November 2023, and by April, Heathrow noted a 19,000 drop in transit passengers from Qatar, with travelers opting for alternative hubs. This decline is seen as a significant setback for UK competitiveness, as many long-haul routes depend on transit passengers.
In July, Heathrow served nearly 8 million passengers, becoming Europe’s busiest airport in the first half of the year, surpassing rivals like Amsterdam Schiphol, Frankfurt, Madrid, and Paris Charles de Gaulle. The airport also exceeded a weekly passenger total of 1.8 million for three consecutive weeks starting July 8. Popular destinations included Venice and Larnaca.
Despite facing challenges such as global IT outages and protests, Heathrow managed its operations effectively. Recent figures show that Doha, Dubai, Dublin, and New York’s JFK were among the routes with 1 million passengers traveling to and from Heathrow this year. Other US destinations also saw increased traffic. In July 2024, Heathrow reported an 8% rise in cargo tonnage and, despite a 2.9% drop in half-year revenues, achieved an underlying profit of £178 million, reversing a £139 million loss from the previous year.
