Manchester Airport passengers face disruption and lost luggage a day after power cut

Thousands of travellers at Manchester Airport faced disruption on Monday after a weekend power cut, despite officials saying flights had resumed.

The power cut, which hit in the early hours of Sunday, caused dozens of flights to be cancelled, with no aircraft able to depart from terminals 1 and 2. There were also long queues at the airport and baggage processing were disrupted.

The incident meant several flights were diverted to other airports. An Etihad Airways flight from Abu Dhabi was redirected to Birmingham Airport.

A Singapore Airlines flight from Houston, Texas, was diverted to London Heathrow while a flight from Singapore landed at London Gatwick.

Manchester airport is the third busiest in the UK, handling about 27 million passengers a year.

People waiting to travel on alternative flights and passengers whose luggage was not loaded on to aircraft were among those affected on Monday. Airline Jet2.com said it "may take some time" for all baggage to reach passengers.

The airport issued a statement to apologise to all those affected. It said normal operations had resumed, but the services would be busier as officials deal with the effects of Sunday's disruption.

“All our systems are running as normal today, so passengers are advised to prepare to travel as usual from Manchester Airport," it said in a post on X.

“That means going online to check the status of your flights before you leave then following your airline’s instructions in terms of when to arrive at the airport – usually two hours for short-haul and three hours for long-haul.

A plane takes off at Manchester Airport. A power cut forced officials to divert flights away from the hub at the weekend. PA

“The airport is likely to be slightly busier than usual due to passengers affected by cancellations yesterday, but we have extra staff in place and our resilience team is helping out.”

Managing director Chris Woodroofe said a "fault with a cable had caused a power surge that took down security systems and baggage screening". An investigation into the incident is under way, he added.

It been a difficult few years for the UK's travel industry. A problem with immigration e-gates at airports across the UK last month caused long delays for thousands of passengers, while a technical issue with air traffic control systems last year also caused widespread disruption.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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