London City Airport struggles as WFH cuts business travel

Before the pandemic, the airport, built near London’s financial district, was packed with costumed travelers jetting around Europe.

This was the main reason for the existence of London City Airport – to serve the business travelers of the British capital.

But things haven’t been the same since working from home, and eventually hybrid work has become the norm. At its peak in 2019, City Airport saw its passenger numbers reach 5 million.

But last year, the airport had as many passengers as it did a decade ago, reflecting the glacial rebound in business travel.

Holidays, on the other hand, have made a strong comeback.

So City Airport is now considering changing course by offering more leisure flights to address the dwindling number of corporate flights.

“It’s becoming quite difficult to work out who a business traveler is… we see that people travel differently,” said Alison FitzGerald, CEO of London City Airport. The Financial Times.

“We are very seasonal at the moment. And we want to use the next generation of aircraft to unlock more leisure routes and longer-range destinations.”

In August, the government approved the expansion of City Airport to serve 9 million passengers, up from the previous cap of 6.5 million and a subsequent increase in flights.

Leon Neal—Getty Images

City Airport’s weak recovery in passenger traffic has weighed on its profits, which were £6.6m last year, compared to £48m in 2019. Of course, the airport’s pre-tax profit has recovered , in contrast to the loss of £1.1 million in 2022. .

Companies are rethinking business travel for a variety of reasons, including hybrid work, climate change and cost.

The UK is one of the most prominent markets for work-related travel. As travel returns to surpass pre-pandemic levels this year, according to the Global Business Travel Association, the city’s airport could benefit.

Representatives from London City Airport have been contacted for comment.

The hallmark of London City Airport

London City Airport was built in 1987 to facilitate quick travel to and from London for workers in the Square Mile or Canary Wharf. This is in contrast to major airports such as Heathrow and Stansted, which offer more flight routes but are further from central London.

Over time, accessibility and limited congestion have made City Airport the airport of choice for many, including Tony Carney, managing director of Kürvers Piping. He frequents the airport for business trips to Europe, he said wealth.

“It’s very efficient. Security always takes me 10 minutes to get through,” Carney said.

He said that while flying from the city’s airport was sometimes the more expensive option, the convenience was worth it.

Despite being a typical airport town, Carney is on the verge of increasing its leisure flight suite and impact on the overall airport choice experience.

“If bringing in all these leisure flights would compromise the efficiency of business travel, it would be quite frustrating, especially if you’re paying this light tax,” he said.