Heathrow Power Outage Costs British Aiways and IAG €50 Million
International Airlines Group, the owner of British Airways, Iberia and Aer Lingus, revealed that a debilitating power outage at London’s Heathrow Airport imposed around €50 million in unexpected costs, according to its May 9 first quarter financial update. On March 20, a fire at the North Hyde Substation knocked out three supergrid transformers, plunging nearly 70,000 customers into darkness and forcing Heathrow to halt almost all operations for nearly 24 hours.
Heathrow is Europe’s busiest airport for international traffic, handling over 80 million passengers annually. The North Hyde Substation, which supplies high-voltage electricity from the National Grid to the airport complex, had no immediate redundant feed. This lack of backup left runways, terminals and critical systems entirely dependent on a single power source.
Shortly before 23:30 local time, London Fire Brigade crews extinguished the blaze that cut power to Terminals 2, 3, 4 and 5. British Airways, which dominates operations in Terminals 3 and 5, faced the brunt of disruption as hundreds of flights were delayed or cancelled and passengers were left stranded amid sudden closures.
IAG said the blackout increased its non-fuel unit costs by roughly one percentage point, representing a €50 million charge against first quarter earnings. IAG said insurance may cover part of the losses, but most will be borne by the group. These costs include passenger compensation under EU261 regulations, emergency crew lodging, rental of backup power equipment and additional handling expenses incurred during the shutdown.
Power was restored about 12 hours after the substation fire, with all terminals re-energized by 14:23 on March 21 following exhaustive safety checks on lighting, baggage systems and IT networks. Limited flight operations resumed that evening as airlines and ground handlers worked to clear a backlog of delayed and cancelled services.
An interim review by the National Energy System Operator on May 8 confirmed that the root cause of the transformer fire remains unknown. London Fire Brigade and National Grid investigators continue forensic examinations of the damaged equipment, while authorities have found no indication of foul play.
The incident highlighted the critical importance of infrastructure resilience for major transport hubs. IAG CEO Luis Gallego emphasized that cooperative contingency planning with airport operators and energy providers is vital to prevent similar episodes. Heathrow officials are weighing measures to introduce alternative grid supplies, on-site generation and faster response protocols.
This outage joins a series of infrastructure failures at global airports in recent years, underscoring the need for modernization and redundancy in power networks. Similar outages at Atlanta and Frankfurt highlight global airport vulnerabilities. Airlines and regulators are assessing how aging energy grids and increased demand from electrified operations could heighten the risk of service disruptions.
In response, IAG plans to allocate part of its 2025 capital expenditure to fund operational resilience projects in collaboration with Heathrow Airport Holdings. The group also intends to expand digital monitoring and predictive maintenance investments. As investigations continue at the North Hyde Substation, industry observers will watch closely to see how swiftly these lessons translate into strengthened systems that safeguard the future of aviation.
Related News : https://airguide.info/?s=Heathrow+Airport