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Heathrow Airport Plans to Charge Passengers Extra £5 Ahead of Third Runway Construction

Strategic Insights

— 2 min read

Heathrow Airport plans to increase fees charged to carriers from £28.46 to £33.26 between 2027 and 2031, a rise of 17%. The increased fees are expected to fund £10bn in investment over the period, which would help lift capacity by around 10m passengers a year. British Airways and other airlines have expressed concerns over the increase, saying it is not justified by levels of performance and service at Europe's busiest airport. The proposal will now be scrutinised by the Civil Aviation Authority (CAA), which has the final say over the charges.

Key Takeaways:

  • Heathrow Airport plans to increase fees from £28.46 to £33.26 between 2027 and 2031, a rise of 17%.
  • The increased fees are expected to fund £10bn in investment over the period, which would help lift capacity by around 10m passengers a year.
  • British Airways and other airlines have expressed concerns over the increase, saying it is not justified by levels of performance and service at Europe's busiest airport.
  • The proposal will now be scrutinised by the Civil Aviation Authority (CAA), which has the final say over the charges.
  • Heathrow attracted a record 84m travellers last year and is operating close to the limits of its two runways.
  • The airport plans to create new terminal space, including the demolition of Terminal 1 and the expansion of Terminal 2.
  • The proposal also includes the creation of a new southern access tunnel to the central terminal area and a 20% increase in cargo capacity.
  • British Airways owner International Airlines Group (IAG) said the proposed rise in charges was excessive and amounted to a 25% price hike based on previously published numbers for 2024.
  • Virgin Atlantic called for the CAA to undertake a “fundamental review” of Heathrow's regulatory model.

Statistics:

  • £28.46: current fees charged to carriers at Heathrow Airport
  • £33.26: proposed fees charged to carriers at Heathrow Airport between 2027 and 2031
  • 17%: increase in fees planned by Heathrow Airport
  • £10bn: investment planned by Heathrow Airport over the period
  • 10m: additional passengers expected to be handled by the airport as a result of the plan
  • 84m: number of travellers attracted to Heathrow Airport last year
  • 2027-2031: period during which the increased fees are planned to be implemented
  • 25%: percentage increase in charges proposed by IAG

Sources:

  • Heathrow Airport: "Heathrow unveils five-year plan to boost operational resilience, deliver better service and unlock growth capacity"
  • British Airways: "BA and IAG respond to Heathrow's five-year plan"
  • Virgin Atlantic: "Virgin Atlantic responds to Heathrow's five-year plan"
  • CAPTION(S): Credit: Akabei/iStock Editorial

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