Summary
Time for a quick recap
UK passengers continued to be hit by travel chaos today as Heathrow asked airlines to cut flights due to a pile-up of baggage and easyJet slashed its summer schedule.....with a massive rail strike just hours away.
Heathrow requested that airlines flying from Terminals 2 and 3 cut 10% of capacity, as it tries to get to grips with a mountain of luggage.
A spokeswoman for Heathrow said:
“We apologise unreservedly for the disruption passengers have faced over the course of this weekend.
“The technical issues affecting baggage systems have led to us making the decision to request airlines operating in Terminals 2 and 3 to consolidate their schedules on Monday June 20.
“This will enable us to minimise ongoing impact and we ask that all passengers check with their airlines for the latest information.”
Around 30 flights carrying up to 5,000 passengers have been cancelled at Heathrow Airport in response.
Some easyJet passengers will learn that their summer flights have been cancelled, as the budget airline cuts capacity in an attempt to avoid more last-minute cancellations.
EasyJet plans to only operate 90% of its 2019 capacity over the next three months, down from a previous target of 97% of pre-Covid flights, which suggests around 11,000 flights could be cut.
The move follows heavy disruption in recent weeks, due to staff shortages that have led London Gatwick and Amsterdam’s Schiphol to cap flights.
EasyJet said it expected most customers to be able to rebook on to alternative flights, many of which would be on the same day as they originally planned to travel, and pledged to notify customers as soon as possible.
There has also been disruption in Brussels, where flights were cancelled today as security staff joined in a cost of living strike.
Due to the industrial action and the lack of security agents, no flights will depart from Brussels Airport today, Monday June 20. This case of force majeure makes it impossible to guarantee the safety of passengers and staff. This decision is needed to avoid chaotic situations. pic.twitter.com/cwHZuQMsdU
— Brussels Airport (@BrusselsAirport) June 20, 2022
Motorists face yet more pain at the pumps, as the cost of diesel and petrol jumped to new record highs over the weekend.
The UK faces its biggest rail strikes since the 1990s, starting tomorrow, after last-minute talks fail to resolve the dispute over pay, jobs and conditions.
Passengers have been warned to expect widespread disruption, as 40,000 RMT members, including signallers, maintenance and train staff, hold their first 24-hour walkouts on Tuesday
Walkouts are also planned on Thursday and Saturday, as part of an ongoing dispute over pay and pensions.
Just one in five trains will run on strike days, with services halted altogether in much of northern and south-west England, Wales and Scotland, meaning millions of people facing a week of cancelled trains.
No 10 accepted that the rail strike would make life “extremely difficult” for commuters this week. The PM’s spokesperson said:
For those that have no choice but to come in it will be extremely difficult tomorrow and I think the public will understandably want to know why they are being put in this position.
We believe we are seeking to offer a fair and reasonable pay rise and modernise the railway services for the long term, and we need to get rid of some of these outdated rules and procedures, some of which have not been updated for decades and which don’t serve the public.
Here’s the latest:
In the financial markets, fears of a global recession pushed the copper price to its lowest level this year.
But European stock markets have managed a rebound, with the FTSE 100 index now up 90 points or 1.3%, recovering from last Friday’s three-month low.
But the pound is only slightly higher against the US dollar, at $1.2244.
Bank of England policymakjer Catherine Mann has called for interest rates to rise faster, warning that a weaker pound could add to inflationary pressures.
In Germany, factories have hiked their prices at the fastest rate on record, going back to 1949, led by sharp jumps in the cost of energy, fertiliser, industrial gas and other commodities.
British manufacturers have called on the Treasury to urgently provide more support amid a poor economic outlook, as they face rising prices and struggle to hire staff.
House prices in Great Britain are likely to start falling during the next few months as five interest rate rises and a worsening cost of living crisis finally start to put the brakes on the property market’s record-breaking run, according to Rightmove.
The Bank of England has ditched rules originally designed to avoid another 2007-style credit crunch, saying today that lenders will no longer have to check whether homeowners could afford mortgage payments.
The UK energy regulator has announced new measures to better protect customers’ money and stop energy suppliers using some of their cash “like an interest-free company credit card” .
And retailer Primark is finally making a significant move into online shopping, with plans to trial a click-and-collect service in the UK. Prices rises are also on the way.
Reminder, the latest rail strike news is here:
We’ll be back with the latest news from business, economics and the financial markets tomorrow....
Updated
The UK’s biggest rail strike in 30 years is to go ahead from tomorrow, after last ditch talks failed to resolve a dispute over pay, jobs and conditions, the RMT union said (via PA Media).
John Leach, assistant general secretary of the RMT rail union, warned this morning that its members have ‘grit and determination’ for a long dispute if necessary.
Our Politics Liveblog has the details:
Updated
