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Modelling regime-switching aviation demand under recurrent global disruptions: A joint Passenger–Cargo resilience and forecasting study of Heathrow Airport
Journal article   Peer reviewed

Modelling regime-switching aviation demand under recurrent global disruptions: A joint Passenger–Cargo resilience and forecasting study of Heathrow Airport

Ghanshyam Ghatole, K. Hemachandran, Raul Rodriguez and Manjeet Rege
Journal of air transport management, Vol.136, p.103055
09/2026

Abstract

Aviation demand forecasting Disruption-aware modelling Heathrow airport Hub airport planning Passenger–cargo resilience Regime-switching demand Structural break detection
This study develops a disruption-aware, region-segmented, joint passenger–cargo resilience and forecasting framework for Heathrow Airport using 20 years of monthly data spanning multiple global crises. Heathrow is examined as a dual passenger–cargo hub whose traffic has been repeatedly affected by the 2008 global financial crisis, Brexit, and the COVID-19 pandemic. The dataset comprises market-wise passenger volumes and cargo tonnage for key regions, enabling long-horizon analysis of traffic evolution and structural change. Methodologically, the study combines structural break detection (including Chow and Bai–Perron tests), a market-wise resilience index based on shock depth, recovery speed, and volatility, passenger–cargo decoupling analysis via rolling correlation and lead–lag patterns, and disruption-aware forecasting models (ARIMA, Prophet, and XGBoost) for a 2026–2035 horizon. Results show that COVID-19 induced persistent regime shifts rather than temporary shocks, with cargo traffic displaying systematically higher and faster resilience than passenger traffic and clear post-2020 decoupling of cargo from passenger demand in several regions. Disruption-aware models reduce long-term forecast errors by approximately 25–40% relative to conventional time-series baselines, particularly around shock periods. The study contributes an integrated empirical framework for understanding regime-switching aviation demand and offers hub-level strategic insights for capacity planning, cargo infrastructure investment, and market diversification under recurrent disruption. •Develops a disruption-aware joint passenger-cargo forecasting framework for Heathrow Airport.•Integrates structural break detection, resilience indexing, and decoupling analysis.•Shows COVID-19 caused persistent regime shifts, not temporary traffic shocks.•Finds cargo recovered faster and remained more resilient than passengers post-COVID.•Disruption-aware models reduced forecast errors by about 25-40% versus baselines.

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