International Consolidated Airlines Group (LSE:IAG) shares slipped more than 2.5% in Tuesday’s deals amid reports that airport charges at Heathrow may be set to rise by up to 50% in 2022.
The UK’s Civil Aviation Authority (CAA) said on Tuesday that Heathrow could increase passenger charges to a range of GBP24.50 and GBP34.40, less than that GBP32 to GBP43 that Heathrow had sought.
The last cap on charges was set at GBP22 per passenger, and an interim fee of GBP30 will now be set whilst a final decision is made early next year.
Airlines were said to be unhappy with the proposal and claimed the airport, which saw a severe drop in volumes in the pandemic, was putting profit before passengers.
IAG’s British Airways has exclusive use of Heathrow Terminal 5 and a large proportion of its routes are based out of the London airport.
On the London Stock Exchange, IAG shares were down 4.58p or 2.6% changing hands at 171.08p, also under pressure along with the rest of the travel and leisure sector as UK Covid-19 cases reach 50,000 a day.
