UK's Heathrow cuts passenger, profit forecast as Iran war disrupts travel

June 26 (Reuters) - Britain's Heathrow Airport on Friday lowered its 2026 passenger forecast and warned that profit could shrink this year, citing uncertainty in global travel demand and pressure from the Middle East conflict.

The war has had an outsized impact on global aviation because of the Middle East's position at the crossroads of Europe, Asia and Africa, dealing a blow to major airports that depend heavily on long-haul connecting traffic.

Heathrow now expects between 80.1 million and 84.5 million passengers in 2026, a 1.1% decline year-on-year and down from an earlier forecast of around 85 million passengers.

The company also expects adjusted core profit to decline by £147 million ($194.03 million) compared to 2025 and £60 million versus its December forecast, driven by a weaker traffic outlook and higher employment costs.

"This reflects the risk that continued volatility in the Middle East could dampen broader traffic volumes, with impacts extending beyond the region to global travel demand over the remainder of the year," Heathrow said in a statement. 

($1 = £0.7576)

(Reporting by Neeshita Beura and Yamini Kalia in Bengaluru; Editing by Sonia Cheema)