Heathrow shutdown costs could soar to $26 million daily, disrupting 4,500 Dubai-bound seats

London’s main airport – Heathrow - has been brought to a standstill following a severe fire that triggered a widespread power outage. The disruption, which began late on March 20, has forced the cancellation of all 1,332 scheduled flights for March 21, impacting thousands of travellers and leading to an estimated $26 million in daily losses.

With Heathrow handling around 1,300 flights daily, the sudden shutdown has forced planes to divert across Britain and Europe, while some long-haul flights had to return to their departure points. Travel consultant Paul Charles told Reuters that the disruption could cost an estimated £20 million ($26 million) per day, with no certainty that the airport will reopen on schedule.

Moreover, the shutdown is set to cause ripple effects across global air travel. Heathrow is the largest airport in Europe by seat capacity (4.29 million scheduled seats for March 2025) and the fifth-largest airport in the world, according to aviation analytics company OAG.

Some of the busiest affected routes include: New York JFK (5,300 scheduled seats), Dubai (4,500 seats), and Frankfurt (3,000 seats). The smallest affected route was the Isle of Man (72 seats), OAG told Gulf News.

From the UAE, both Emirates and Etihad Airways have cancelled operations to London Heathrow for March 21.

The shutdown has caused major operational chaos, with airlines scrambling to divert flights to alternative airports across the UK and Europe. British Airways (BA), Heathrow’s largest operator, has rerouted flights to Gatwick, Manchester, Birmingham, and Glasgow, while some long-haul flights returned to their departure points. Virgin Atlantic has also suspended all operations at Heathrow until further notice.

Budget airline Ryanair has added flights between London Stansted and Dublin to accommodate stranded passengers.

The shutdown has left thousands of travellers stranded across Europe. Some of the worst-affected passengers include those who were mid-flight when the closure was announced. Over 120 planes en route to Heathrow were forced to divert.

According to a report from The Independent's Simon Calder, flights from New York JFK were redirected to Shannon, Ireland, causing complications for travellers without Schengen visas. A British Airways flight from Accra, Ghana, landed in Lyon, France, stranding passengers in an unexpected EU destination. Long-haul flights from Cape Town, Johannesburg, Lagos, and Singapore were rerouted to London, Gatwick, Manchester, and Glasgow. Some planes, including Virgin Atlantic flights from Barbados, landed in Cardiff instead.

A BA spokesperson told Aviation Weekly that the airline was still assessing the knock-on effects of displaced aircraft, warning of potentially prolonged disruptions.

The fire that caused the crisis broke out at the North Hayes electricity substation, just north of Heathrow, at approximately 11:00 p.m. on March 20. Emergency crews brought the blaze under control by 8:00 a.m. on March 21. Still, the extent of the damage has left uncertainty over when operations will resume.

The incident has reignited concerns over Heathrow’s infrastructure resilience. Willie Walsh, Director General of IATA, criticised the airport’s dependency on a single power source, calling it a “clear planning failure.” He also questioned why airlines were expected to bear the cost of passenger disruptions when the failure originated from airport infrastructure.

“This is another case where Heathrow let down both travellers and airlines. And that begs some serious questions. Firstly, how is it that critical infrastructure—of national and global importance—is totally dependent on a single power source without an alternative. If that is the case—as it seems—then it is a clear planning failure by the airport,” said Walsh.

 “And, from that arises the question of who bears the costs of taking care of disrupted travellers. We must find a fairer allocation of passenger care costs than airlines alone, picking up the tab when infrastructure fails. Until that happens, Heathrow has minimal incentive to improve,” said the IATA chief.

Despite efforts to restore operations, Heathrow officials have yet to provide a definitive timeline for reopening. Airlines, including BA and Virgin Atlantic, remain in “reaction mode,” awaiting further updates. Carriers like Swiss Airways have already extended the cancellations to March 22. With Heathrow handling over 1,300 flights daily, the ongoing shutdown could have devastating financial and logistical repercussions for both airlines and passengers. The coming days will determine how quickly the UK’s busiest airport can recover from this unprecedented crisis.