The substation fire that forced Heathrow to close for nearly a day in March cost the airport tens of millions of pounds, according to CEO Thomas Woldbye. Speaking publicly about the financial impact for the first time, Woldbye said Heathrow has not yet decided whether to seek damages from National Grid, pending the outcome of an investigation by energy regulator Ofgem.
The fire, which disrupted over 270,000 passenger journeys on 21 March, was caused by a known, preventable fault at the North Hyde substation. A report by the National Energy System Operator found that insufficient action had been taken to address problems detected in 2018. Ofgem has launched a probe into the incident.
Woldbye, who admitted he slept through the night with his phone on silent, said he 'would have liked to see my personal role play out differently'. He also confirmed that Heathrow will invest in improving the airport's physical resilience, in agreement with airlines.
The comments came as Heathrow reported a one-third drop in pre-tax profits to £203 million in the first half of the year, despite record passenger numbers of 39.9 million. Woldbye attributed the decline to higher finance costs due to increased interest rates.
Heathrow has submitted a five-year investment plan to the Civil Aviation Authority, proposing a £5 increase in passenger charges. Next week, the airport will submit further plans to the government for a third runway, after Chancellor Rachel Reeves signalled support for the controversial scheme. Woldbye cautioned that the runway would not be operational until 2035 at the earliest, and said the airport would proceed cautiously, noting that customer and national support is essential.
Heathrow's submission is expected to outline the need for new flight paths and planning reform before major investment, but will include a baseline plan for the runway. The project would require significant work on the M25 and increase flights by up to 50%. Woldbye acknowledged the importance of the runway for UK aviation capacity but stated, 'Will Heathrow survive without a third runway? Yes.'
