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Heathrow Passengers to Fund Third Runway Bidding Costs

Heathrow Airport will be allowed to pass on over £300m in third runway bidding costs to passengers, a decision by the Civil Aviation Authority (CAA) has confirmed.

  • Heathrow Airport Limited (HAL) can recoup £320m in third runway bid costs.
  • Rival bidder Heathrow West can reclaim £4.2m for its proposal.
  • The CAA ruling will add approximately 15p to passenger fares in 2028, rising to 30p in later years.

Heathrow Airport has received approval from the Civil Aviation Authority (CAA) to pass on the costs incurred during the bidding process for its third runway to passengers. This ruling allows Heathrow Airport Limited (HAL) to recoup £320m it has spent on its proposal.

Rival bidder Heathrow West has also been granted permission to reclaim £4.2m for its efforts. The CAA stated that these design and planning efforts were necessary for the timely delivery of the third runway expansion.

Under a compensation scheme, HAL will be permitted to add 10p to every passenger fare for the next 20 to 25 years. The CAA's decision on Wednesday is expected to increase the airport charge per passenger by around 15p in 2028, rising to 30p in subsequent years.

Why this matters: The decision is expected to extend Heathrow's position as the world's most expensive airport.

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