Skip to content
Search

Latest Stories

Submit Guest Post

Heathrow wins approval to recover £320m runway costs from passengers

Britain's aviation regulator has approved the recovery of early expansion costs through higher airport charges

Heathrow

Heathrow passengers could begin contributing to runway expansion years before construction starts

Getty Images
  • Heathrow can recover £320 million in early third runway planning costs.
  • Airport charges could add 15p to tickets from 2028, rising to 30p in later years.
  • Airlines have warned the move could make Heathrow even more expensive.

Heathrow passengers could soon start paying towards the airport's long-awaited third runway, even though construction has yet to begin.

The Civil Aviation Authority (CAA) has approved Heathrow Airport's request to recover up to £320 million spent on planning and designing the expansion project during 2025 and 2026. The money will be collected through higher airport charges paid by airlines, costs that are typically passed on to passengers through air fares.


The regulator estimates the decision will increase the maximum airport charge by around 15p per passenger in 2028, rising to about 30p in the following years.

The approved costs relate only to the early stages of the project, including planning, design work and preparations for a future planning application. They do not include the cost of building the proposed £33 billion third runway, meaning the overall impact on ticket prices is still unknown.

The CAA said the decision aims to balance Heathrow's need to progress with expansion while protecting passengers from unnecessary costs. Tim Johnson, the regulator's director of consumers and markets, reportedly said the recoverable costs are capped, independently scrutinised and subject to efficiency reviews to ensure passengers pay only for justified spending.

The regulator has also approved the recovery of £4.1 million spent by Heathrow West, the rival expansion proposal led by the Arora Group, before the government selected Heathrow Airport's own plan as its preferred option in November.

A decades-long project still faces hurdles

Although the government has backed Heathrow's £33 billion expansion proposal, the project remains years away from construction. Ministers hope to reach a planning decision by 2029, while the government has said it wants the runway built by 2035.

Heathrow reportedly said the expansion would make travel more affordable, offer passengers greater choice and deliver economic benefits across the UK. The airport added that it is reviewing the regulator's proposals before making investment decisions.

Not everyone is convinced.

Airlines have repeatedly argued that Heathrow is already one of the world's most expensive hub airports. British Airways, Heathrow's largest airline, reportedly warned that allowing the airport to recover costs at such an early stage risks making expansion unaffordable for consumers and weakening the economic case for the project.

Environmental groups, local residents and some politicians continue to oppose the third runway, arguing it could increase aircraft noise, worsen air pollution and make it harder for the UK to meet its climate commitments.

The CAA's decision covers only the first phase of planning costs. A separate process will determine how Heathrow can recover costs incurred from 2027 onwards, meaning passengers could face further charges as the expansion project moves forward.

Add EasternEye As Your Trusted Source
preferred source on google news

More For You

Heathrow Airport

Heathrow expansion could mean higher flight prices as the aviation industry faces pressure to cut emissions

iStock

How much more could you pay to fly if Heathrow gets its third runway?

  • A return flight to Alicante could cost an extra £150 by 2050 under the proposed approach.
  • A return trip to New York could cost up to £400 more.
  • The Climate Change Committee says Heathrow expansion must be matched by stronger action to cut aviation emissions.

Heathrow's proposed third runway could eventually make flying more expensive for passengers, with the UK's climate advisers warning that airlines may need to pass the cost of cutting aviation emissions on to travellers.

The Climate Change Committee (CCC) said Heathrow expansion could breach the UK's carbon budgets and make the 2050 net zero target impossible under current policies. It said expansion could only be compatible with the UK's climate commitments if the aviation industry became more efficient, increased its use of sustainable aviation fuel and paid for the permanent removal and storage of carbon from the atmosphere.

Keep ReadingShow less