Heathrow Airport is in the process of recovering from an unprecedented all-day power outage that disrupted travel for hundreds of thousands of passengers at Europe’s busiest airport. The airport announced plans to resume some flights later, prioritizing passenger departures and aircraft repositioning. Full operations are expected to resume soon, but passengers are advised to only head to the airport if instructed by their airline.
The power outage caused significant disruption for travelers planning to arrive or depart from this crucial European hub. The Metropolitan Police's counter-terrorism command is leading an investigation due to the fire's location and its impact on national infrastructure, although there are no signs of deliberate wrongdoing at this time.
The incident is expected to have a lasting impact on airlines and their customers, with disruptions anticipated in the coming days. As of the afternoon, power was partially restored to some areas of the airport, indicating progress in resolving the outage. Over 1,300 flights were canceled or rerouted, with nearby airports like London Gatwick and Frankfurt handling some of the diverted flights.
Financial repercussions from the disruption could reach $80 million to $100 million, considering costs related to accommodation, transportation, and broader operational impacts such as route adjustments and schedule disruptions. This scale of service interruption is unprecedented for Heathrow. British Airways, based at Heathrow, had approximately 677 flights affected, followed by Virgin Atlantic with 62 flights and Lufthansa with 42 flights.
The stock of International Airlines Group (IAG, Financial), British Airways' parent company, fell by 4.3% in London, with a year-to-date decline of 5.8%. Despite this, IAG shares have nearly doubled in 2024 as the company improved services and reduced debt.
This power outage raises questions about Heathrow's infrastructure resilience and why such a significant airport lacks the necessary power redundancy systems. Energy Secretary Ed Miliband stated that the fire affected Heathrow's backup generators and the substation serving the airport, yet there are no indications of intentional wrongdoing.
Heathrow is seeking to add a third runway as part of a long-term plan to increase passenger capacity and maintain competitiveness with global hubs like Dubai and Istanbul. The airport's ownership structure includes major investors like France's Ardian SAS, Qatar Investment Authority, and Saudi Arabia's Public Investment Fund.
As of Friday morning, the fire was under control. The blaze at a substation north of Heathrow in Hayes led to local power outages, affecting thousands of residents and businesses, and prompted some evacuations. The airport was closed early Friday and remained shut throughout the day. The substation belongs to the UK National Grid, which is working to restore power as quickly as possible.
