Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
The UK’s travel recovery has begun, according to Heathrow Airport, which has reported its busiest month since the pandemic began — despite ‘barriers to travel’ remaining.
More than 1.5 million passengers passed through its terminals in July — 75% more than a year earlier, following the easing of travel restrictions.
But.. that’s still over 80% down on July 2019 — when 7.75 million customers travelled through Heathrow in a typically busy pre-pandemic summer month.
Heathrow says the “long road to recovery” has started:
The relaxation in rules has provided a much-needed boost to the UK travel industry, and enabled people across Britain to look forward to a more normal summer reuniting with family and friends abroad.
North American passenger numbers grew by nearly 230% year-on-year, with New York’s JFK airport reclaiming its top spot as Heathrow’s most popular route.
David Edwards
(@ScattClouds)July was Heathrow’s busiest month since March 2020 with 1.5 million passengers, up 74% on a year ago, but for a more reliable comparison traffic remained 81% down on July 2019. The proportion of passengers on a domestic flight has increased from 6% in July 2019 to 11% this July. pic.twitter.com/iNVaoK2gqZ
And after a very tough pandemic, the UK’s largest airport warns that it faces a ‘long road to recovery’ — pointing to the cost of Covid-19 tests, and the effective ban on UK passengers visiting the US.
Reuters UK
(@ReutersUK)The travel recovery has started, Britain’s Heathrow Airport says https://t.co/aMUb83ePo6 pic.twitter.com/95RJ0nAkGy
Since the start of August, fully vaccinated travellers from US and EU have been allowed to visit England without having to isolate. And Heathrow is urging the United States to follow suit, and lift its restrictions on fully-vaccinated travellers from the UK.
With fully vaccinated US visitors now able to travel to the UK without the need to quarantine, the joint UK/US travel taskforce must capitalise on the UK’s world-leading vaccine rollout and reach a reciprocal agreement for fully vaccinated UK travellers.
The airport is also pushing the government to cut the cost of Covid-19 tests — saying that other European countries have slashed their prices, or are subsiding them.
Heathrow argues that cheaper lateral flow tests should be used for low-risk destinations — to avoid travel becoming the preserve for the wealthy.
Heathrow chief operating officer, Emma Gilthorpe, says:
“Finally, some blue skies are on the horizon, as travel and trade routes slowly reopen. The job though is far from complete. Government must now capitalise on the vaccine dividend and seize the opportunity to replace expensive PCR tests with more affordable lateral flow tests.
This will ensure travel remains attainable for hardworking Brits, desperate for well-earned getaways and keen to reunite with loved ones before the summer travel window closes.”
The UK’s competition watchdog is also examining the issue of Covid-19 test fees, following concerns about the vastly different prices being charged for them.
My colleague Sarah Butler explained on Sunday that:
Similar tests for day 2 and 8 after return to England listed on the government’s website can cost more than £300 or as little as £20. On average, prices in the UK are £75, compared with about £40 in France and Greece.
Health secretary Sajid Javid wrote to the Competition and Markets Authority last Friday asking the body to help stamp out “exploitative behaviour” and “unfair practices” among the 400-plus firms which offer the tests and he said the government was determined to take action.
Also coming up today
The future of UK inhaler firm Vectura hangs in the balance, after private equity bidder Carlyle stepped back from a bidding war with tobacco firm Philip Morris International.
PMI now has until 5pm Thursday to improve its (already higher) offer, while Vectura’s board must now decide which bid to back.
In a statement to the City this morning, Vectura’s board says they will “make a further announcement” once that deadline has expired, or sooner if PMI declares its offer is final.
The markets are also bracing for the latest US inflation data, which will show whether prices kept pushing higher last month. The US CPI is expected to dip to 5.3% year-on-year, from a 13-year high of 5.4% in June.
The agenda
- 9am BST: China’s money supply and loan data for July
- 9.30am BST: UK manufacturers’ sales by product: 2020, released by the Office for National Statistics
- Noon BST: US weekly mortgage approvals.
- 1.30pm BST: US inflation data for July
