Heathrow passengers could face higher fares for decades after the Civil Aviation Authority (CAA) permitted Heathrow Airport Limited (HAL) to recover £320m in early costs associated with its expansion plan.
The money, spent on the proposal to build a third runway since the start of last year, will be recouped through increased airline charges. These charges are typically passed on to travellers in air fares for approximately 20-25 years.
The CAA stated that this decision is expected to increase the maximum airport charge per passenger by around 15p in 2028, potentially rising to an estimated 30p in subsequent years.
British Airways, the largest airline operating at Heathrow, had previously warned that early cost recovery by HAL could make expansion "unaffordable for consumers and inconsistent with a credible benefits case," according to a CAA document.
In a separate development, Heathrow West, a rival expansion scheme, has been allowed to recoup £4.1m spent on its plan in 2025 up to November 25, when HAL's proposal was named the government's preferred option.