Heathrow Airport feels pain from Middle East war

LONDON - London Heathrow Airport has lowered its 2026 passenger forecast, citing the impact of the Iran war. The airport now expects passenger numbers to decline 1.1 percent year over year to a base-case forecast of 83.6 million passengers in 2026, with a downside scenario of just 80.1 million.

The revised forecast reflects "continued volatility in the Middle East," which "could dampen broader traffic volumes, with impacts extending beyond the region to global travel demand over the remainder of the year," Heathrow said in an investor update.

Although Heathrow recorded a 0.7 percent increase in passenger traffic through May 2026, the airport said this was driven by temporary shifts in travel patterns related to the Iran war.

"The ongoing conflict in the Middle East is putting notable downward pressure on traffic," Heathrow said.

Heathrow now expects profit to decline by GBP 147 million year over year to GBP 1.88 billion, which is GBP 60 million below its previous profit guidance.