Britain's Civil Aviation Authority has rejected Heathrow Airport's plan to raise landing fees to fund a £10bn upgrade, capping the increase at just 40p per passenger over five years. The regulator's decision follows intense criticism from airlines including British Airways owner IAG and Virgin Atlantic, who warned that higher charges would translate into increased ticket prices for travelers.

Heathrow had proposed a 17 per cent increase to £33.26 per passenger to fund improvements that would handle 10 million additional passengers annually by 2031. The CAA instead approved only £5.8bn in spending, focusing on essential infrastructure like the airport's electrical network after last year's power outage forced the cancellation of over 1,300 flights. The regulator emphasized improving service quality and resilience rather than expansion.

The five-year pricing plan, running from January 2027 to December 2031, remains under consultation with final proposals due in November and a decision expected in April 2027. This marks another setback for Heathrow's expansion ambitions, as airlines have consistently opposed fee increases since the pandemic recovery outpaced expectations, forcing the airport to reduce charges for 2024.