$26 million per day: The staggering cost of Heathrow Airport’s shutdown

The closure of Heathrow Airport, one of the world’s busiest aviation hubs, is expected to disrupt global air travel for days, with financial losses estimated in the tens of millions of dollars.

The crisis began when a fire at a nearby electrical substation knocked out Heathrow’s primary power supply—along with its backup system. The scale of the disruption is unprecedented since the Icelandic ash cloud crisis in 2010, leaving experts stunned as they assess the financial and logistical fallout.

The UK’s Energy Minister, Ed Miliband, confirmed that the fire prevented Heathrow’s power backup from functioning. Engineers are now working to implement a third backup mechanism while the government assesses whether the incident exposes broader infrastructure vulnerabilities.

A Costly Disruption

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.

"Heathrow is a critical part of the UK’s infrastructure, and its backup systems should have been failsafe," Charles told Reuters.

The closure of Heathrow Airport, one of the world’s busiest aviation hubs, is expected to disrupt global air travel for days, with financial losses estimated in the tens of millions of dollars.

Airlines now face the logistical challenge of repositioning planes, rescheduling crews, and accommodating displaced passengers.

Karen Dee, CEO of trade group Airlines UK, emphasized that the immediate priority is to clear the backlog: "The focus right now is restoring normal operations as quickly as possible."

Independent aviation consultant John Strickland warned that the disruptions could persist for days: "When aircraft and crews are stranded away from their base, they must wait for legally required rest periods before resuming flights."

Repeated Failures
The Heathrow outage is the latest in a series of aviation system failures in the UK. In 2023, an air traffic control malfunction at Britain’s National Air Traffic Services (NATS) cost airlines over ?100 million ($129 million) and raised concerns about infrastructure reliability.

If the Heathrow crisis extends beyond Friday, public scrutiny will intensify, and accountability questions will follow.

Under UK and EU regulations, passengers are entitled to compensation for delays of over three hours, along with accommodation and food—but only if the airline is at fault. Since this outage stems from an external infrastructure failure, airlines are not legally obligated to cover these costs.

However, many airlines are likely to offer rebooking or refunds in the interest of customer service. This raises another issue: who will bear the financial burden?

"This will lead to heavy negotiations between Heathrow Airport, airlines, electricity providers, and insurance companies. Nobody wants to take responsibility if they can avoid it," Strickland said.