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 £24.50 and £34.40, less than that £32 to £43 that Heathrow had sought.
The last cap on charges was set at £22 per passenger, and an interim fee of £30 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.