Holidaymakers and passengers arrive at Terminal 2 at London Heathrow Airport, west of London, April 6, 2022. British Airways cancelled 78 flights due to land or take off at Heathrow Airport on Wednesday as staff shortages caused by the coronavirus pandemic continue to disrupt the aviation industry. (Photo: JUSTIN TALLIS / AFP)
LONDON, United Kingdom — London Heathrow Airport on Wednesday unveiled plans to invest 2.3 billion pounds ($2.9 billion) over the next two years to upgrade Europe’s busiest airport.
The company said the airport has faced increased passenger demand since the outbreak of the coronavirus pandemic and the investment will go towards projects to improve baggage delivery and support on-time departures and arrivals.
The announcement comes days after French private equity group Ardian and Saudi Arabia’s sovereign wealth fund PIF finalised their acquisition of nearly 38% of Heathrow Airport from Spanish infrastructure giant Ferrovial and other shareholders.
Heathrow is the busiest airport in the UK and Europe, with a record 39.8 million passengers in the first half of 2024, more than doubling its passenger traffic after the outbreak of the coronavirus pandemic.
The company recently raised its full-year passenger forecast to 83.8 million.
Heathrow and its European counterparts have suffered flight cancellations, delays, queues and baggage delivery problems since the outbreak began.
Earlier this year Heathrow criticised a decision by the UK Civil Aviation Authority to reduce the fees it charges airlines in 2025 and 2026.
In October, the airport reported a 3.2 percent drop in revenue in the first nine months of the year as fees have fallen.
However, net profit after tax rose by nearly 8% to £496m.