Airline shares dive as Heathrow fireplace sparks chaos for greater than 200,000 passengers
Airline shares plunged today as the Heathrow fire caused carnage for hundreds of thousands of passengers.
Stock in British Airways parent group IAG was down more than 4 per cent in early trading as markets absorbed the impact of the chaos. It latest stabilised, but was still around 1.5 per cent in the red.
Analysts pointed to the huge compensation costs for travellers, which could wipe huge sums off earnings.
EasyJet shares fell over 2 per cent before clawing back some ground, while Germany’s Lufthansa – which also operates flights out of Heathrow – lost more than 1 per cent.
The airport has been shut for the day after its main electrical substation exploded and caught fire less than two miles away in the west London suburb of Hayes.
Around 220,000 people were due to use Heathrow today and the chaos from the complete closure will rumble on over the weekend and into next week because aircraft and passengers are now in the wrong place all over the world.
Stock in British Airways parent group IAG were down more than 4 per cent in early trading as markets absorbed the impact of the chaos
The FTSE 100 fell this morning, although there were other factors at play such as grim public sector finance figures
The shocking scenes at Heathrow’s main substation in Hayes, which exploded and set alight last night shutting down Britain’s busiest airport for all of Friday grounding 1,357 flights and more than 200,000 people
At least 1,357 flights have already been cancelled, diverted or delayed today. Some planes already on their way London managed to land at other UK airports – but many including Gatwick are now full.
Dozens of flights have been diverted to Amsterdam, Frankfurt, Lyon and other European cities, stranding tens of thousands of people abroad. Some planes were even forced to turn back and set down in New York, Los Angeles, Mumbai and Delhi, where Air India has now cancelled all its flights to London.
British Airways, American Airlines, Virgin Atlantic, United Airlines, Air Canada and Delta have suffered the largest number of cancellations and diversions.
It is the biggest disruption for UK aviation since the Icelandic volcanic ash cloud grounded and diverted flights in April and May 2010, costing airlines and its customers an estimated £130million every day.
Ministers have so far been playing down speculation about a Russian sabotage operation.
The need to shut down the airport due to the loss of just one electrical substation is unprecedented and raises major questions for Heathrow and the Government. It has also left many stranded travellers raging.
Senior sources at the airport have insisted that Heathrow does have back-up power systems but ‘activating contingencies for the whole airport requires some time’ and ‘isn’t immediate’, one insider said.
A passenger at Heathrow T5 this morning after fire at an electrical substation knocked out power
EasyJet shares fell over 2 per cent before clawing back some ground this morning
