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Heathrow to Boost Fees to Fund Third Runway

Financial Times Companies •
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Heathrow Airport Limited can now raise passenger fees to recover up to £320 million spent on its third‑runway bid, the Civil Aviation Authority said on Monday. The regulator said the move gives the UK hub needed to keep its expansion work moving. Added costs would appear on fees in 2027‑28 and total less than a tenth of a penny per traveller.

The £33 billion plan, part of a £49 billion decade‑long investment, aims to finish the runway by 2035 after a 2029 planning application. Airlines such as British Airways and Virgin Atlantic have slammed the expense, arguing the extra landing charges could curb demand. IAG warned that preparatory costs were rising before any passenger benefit materialised for its operations in the future.

The CAA capped Heathrow’s fee hike at £28.80 per passenger, a 40‑pence rise instead of the 17 percent increase the airport sought. It also ordered the hub to trim other spending and focus on customer service. By limiting the runway’s cost recovery to under ten pence per traveller, regulators aim to balance investment with airline affordability for current and future growth.