All News
Left arrow

Heathrow Pushes for Higher Fees to Fund £10bn Expansion Plan

Heathrow Pushes for Higher Fees to Fund £10bn Expansion Plan
Airport Seeks 17% Landing Fee Hike to Support Infrastructure Upgrades and Boost Capacity

London Heathrow has submitted a proposal to raise airline landing fees by 17% to fund a £10 billion investment plan. The five-year plan aims to increase the airport’s capacity to 92 million passengers annually by 2031.

The proposal, submitted to the UK Civil Aviation Authority (CAA), would raise the average per-passenger charge from £28.46 to £33.26. Heathrow says the extra funds will modernise infrastructure, improve service, and create space for 10 million more travellers each year.

The project includes demolishing Terminal 1, expanding Terminal 2, and building new lounges, restaurants, and retail areas. It also includes plans for faster security, smoother baggage handling, and a new southern access tunnel.

Heathrow CEO Thomas Woldbye defended the plan, saying: “To compete globally, we must invest to meet future demand.” Despite the proposed increase, Woldbye claims Heathrow’s average charge remains lower than a decade ago in real terms.

Airlines Push Back on Costs

Virgin Atlantic and British Airways parent company IAG have strongly opposed the proposed charge hike. Virgin said, “Heathrow is already the most expensive airport in the world” and criticised its capital spending as inefficient.

The airline warned that passengers and carriers will ultimately foot the bill for the massive investment. Virgin also called for an urgent review of Heathrow’s regulatory framework, citing concerns over its monopoly power.

IAG echoed the concerns, calling the proposed 25% rise in actual fees “excessive” and demanding major revisions. They argue the £10bn plan will not increase capacity meaningfully and lacks clear value for money.

Third Runway Proposal Still Separate

While the investment plan excludes the long-debated third runway, Heathrow must submit that proposal by July 31. The Department for Transport will consider it separately, with the new Labour government indicating likely support. If approved, the runway will follow a different funding mechanism, separate from the landing charge increase.

CAA to Decide on Charges

The CAA must now review the proposal and determine whether the increase is justified and fair for consumers. Airlines warn that if approved, the charges will likely raise ticket prices, affecting millions of travellers.

Heathrow processed nearly 84 million passengers in 2024 and recorded its busiest May on record. The airport insists the upgrades will deliver long-term benefits through better service, space, and operational resilience.

But critics remain sceptical that travellers should bear the financial burden of Heathrow’s future growth.