Heathrow is seeking approval from the Civil Aviation Authority (CAA) to raise landing fees by 17%, raising the average charge per passenger from £28.46 to approximately £33.26 over the 2027–2031 period.
The revenue will support a £10 billion investment plan aimed at expanding capacity to 92 million passengers, increasing terminal space, and enhancing lounges, shops, and restaurants.
Chief Executive Thomas Woldbye emphasised that despite rising charges, the real‑term cost remains lower than it was a decade ago. The proposal focuses on strengthening operational resilience and improving service for both airlines and travellers.
However, major airlines have been highly critical. International Airlines Group (IAG), which includes British Airways, Aer Lingus, and Iberia, described the increase as “excessive” and expressed concerns about value for money for both passengers and airlines. IAG pointed out that “Heathrow was already the most expensive airport in the world” and demanded “significant revision.”
Virgin Atlantic joined the criticism, arguing that “Only Heathrow, with its monopoly power as the UK’s only hub airport, would think that this £10 bn investment plan represents value for money – and that’s before any third runway expansion costs are factored into the equation.”
Earlier this decade, the UK’s competition regulator required Heathrow to cut charges by almost 20% in 2024, rejecting a proposal to use those additional funds for baggage handling, security, and similar services.
This latest submission to the CAA does not include the third runway project; that is set to be detailed separately later this month. The Labour government has indicated support for the runway, but the funding model will differ.
Key facets of the five‑year plan include adding 70,000 m² of usable terminal space by converting areas not currently accessible to passengers, increasing passenger capacity by 10 million per annum, and boosting cargo capacity by 20%.
Infrastructure proposals also include demolishing the redundant Terminal 1, expanding Terminal 2, and constructing a new access tunnel to the central terminal area.
Heathrow shareholders—including private equity firm Ardian—will contribute £2 billion in equity towards the expansion. Woldbye highlighted recent performance improvements, noting Heathrow has become Europe’s most punctual major airport this year. He pointed to the role of UK-based suppliers in driving new jobs and economic growth through this investment.
The CAA now faces the challenge of weighing Heathrow’s ambitious expansion plans against concerns from airlines and passengers.
If approved, the uplifted fees and infrastructure enhancements will shape Heathrow’s future well into the 2030s, impacting pricing, passenger experience, and the competitiveness of UK aviation.
