Heathrow passengers face higher fares as airport can recover early expansion plan costs
Summary
Heathrow Airport has been allowed to recover £320 million spent on planning its third runway by charging airlines higher fees. These costs will be passed to passengers through higher airfares for the next 20 to 25 years, starting with a small increase in 2028.Key Facts
- Heathrow Airport spent £320 million developing plans for a third runway since early last year.
- The Civil Aviation Authority (CAA) allowed the airport to recoup this money by raising charges to airlines.
- These higher charges will likely increase airfares for passengers for 20 to 25 years.
- The initial cost increase per passenger will be about 15 pence in 2028, rising to about 30 pence later.
- A rival plan, Heathrow West, can recover £4.1 million spent on its expansion proposal until November 2025.
- Airlines, including British Airways, warn that early cost recovery may make the expansion too expensive for travelers.
- The CAA says the recovered costs are capped, reviewed for efficiency, and only cover justified expenses needed to develop expansion plans.
- The UK government aims to start building the third runway during the current parliament, targeting completion by 2035.
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