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Heathrow to Recover Runway Costs, Potentially Raising Ticket Prices

Heathrow Airport has received approval to charge airlines more to recoup up to £320m spent on its third runway project, a move expected to lead to higher passenger fares.

  • Heathrow Airport can recover up to £320m for early third runway work.
  • An unsuccessful bidder, Arora Group's Heathrow West, can also recover £4.1m in costs.
  • The Civil Aviation Authority (CAA) estimates airport charges per passenger could rise by 15 pence in 2028, increasing to 30 pence in subsequent years.

Heathrow Airport has been granted permission to increase charges to airlines to recover money invested in the initial stages of its third runway project. The aviation regulator, the Civil Aviation Authority (CAA), will allow the airport to claw back up to £320m through higher airport charges.

These increased charges to airlines are likely to be passed on to passengers, potentially resulting in higher ticket prices. The CAA stated that safeguards would be implemented to protect consumers from unjustified costs.

The costs for early planning and design during 2025 and 2026 will be recovered by adding to the fees the airport charges per passenger. Additionally, Arora Group's Heathrow West, an unsuccessful bidder for the runway project, will be allowed to recover £4.1m in costs, which Heathrow will also collect through its airport charges.

The CAA estimates that allowing these costs to be recouped will increase the maximum airport charge per passenger by approximately 15 pence in 2028, rising to an estimated 30 pence in the years that follow.

What this means for you: You may see an increase in the cost of air tickets for flights from Heathrow, with an estimated rise of 15 pence per passenger in 2028, potentially increasing to 30 pence in later years.

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