The UK aviation regulator has rejected Heathrow Airport’s plan to sharply raise landing fees, stating the airport can fund upgrades without imposing steep costs on passengers.
The Civil Aviation Authority (CAA) has proposed that the average passenger charge at Heathrow rises modestly from £28.40 to £28.80 between 2027 and 2031. This contrasts with Heathrow’s 2024 proposal to increase charges by 17% to £33.26, which sparked criticism from airlines warning it would push up ticket prices.
Under the CAA’s plan, the increase is just 1%, £5.40 (16%) lower than Heathrow’s proposal but £5.80 (25%) higher than what airlines requested. Selina Chadha, CAA group director of consumer markets, said: “Our priority is protecting passengers while supporting sustainable investment and efficiency. These proposals balance fair prices with the airport’s need to improve services for the future.”
The regulator’s initial plan would see Heathrow invest between £5.4bn and £6.1bn in key projects, including upgrades to its electrical systems. The airport suffered major disruption last year when a nearby electricity substation fire forced the closure of operations and the cancellation of over 1,300 flights.
Heathrow, Europe’s busiest airport, had sought approval to spend up to £10bn to accommodate an extra 10 million passengers annually by 2031, with planned improvements including modernisation of Terminal 5.
Thomas Woldbye, Heathrow chief executive, said: “We will review the CAA’s proposals carefully to understand the impact on delivering the improvements customers expect. The proposal may require difficult trade-offs in service and delay some projects.”
The CAA will publish final proposals in November, excluding decisions on a third runway. A final decision on airport charges is expected in April 2027.
Heathrow previously cut passenger charges by almost 20% in 2023 after losing a competition appeal against the CAA’s regulations.