British Airways' Gatwick short haul reversal raises long haul doubts

British Airways has shelved plans for a new low cost subsidiary on short haul routes at London Gatwick.

Unable to reach agreement with the pilot union, BALPA, it has now closed most of its short haul operations at Gatwick (or, more accurately, not restarted flights closed in the coronavirus pandemic). European flights from what was its number two airport had been "losing money for years". It will retain minimal domestic feed into its long haul operation, but otherwise consolidate at its main Heathrow hub.

The news is a blow to Gatwick Airport, whose capacity recovery is well behind the UK's overall, particularly versus other leading London airports (even more so compared with Stansted and Luton, the other main leisure airports).

Gatwick has already lost significant long haul connectivity, where BA has cut and Norwegian and Virgin Atlantic have withdrawn. EasyJet and TUI Airways have increased their seat share at Gatwick (but in a smaller market).

Gatwick's long haul capacity recovery has been weaker than its short haul. BA is currently scheduled to restore much of its pre-pandemic long haul capacity. However, with only limited short haul feed, this may be at risk.