London’s Heathrow airport will charge departing passengers an extra 8.90 pounds ($12.40) in an effort to recover costs, as the coronavirus crisis continues to impact air travel.
The tariff is permitted by the U.K’s aviation regulator under a protocol that allows the hub to cover costs for utilities, baggage and check-in services. Heathrow makes “zero profit” from such activities, with the fees covering operating and maintenance expenses, it said in a statement Sunday.
London’s Heathrow airport recorded a net annual loss of £2 billion in 2020, as a result of the huge impact of the coronavirus pandemic on the aviation sector.
2020 which has been identified as one of Heathrow’s most challenging years, recorded low passengers’ level not seen since the 1970s.
The new per-passenger levy, or airport cost recovery charge, is due to be imposed for the rest of this year and was agreed with airlines as the preferred way for Heathrow to recover its costs, according to a general notice dated February 4, detailing the price increases.
Heathrow, controlled by interests including Spanish builder Ferrovial SA, the Qatar Investment Authority, private-equity firm Alinda Capital Partners and China Investment Corp., will also charge a 4.44-pound tariff for each item of passenger luggage.