Heathrow Airport will be allowed to recover more than £320 million of early planning and design costs related to its proposed third runway project, potentially leading to higher passenger charges for up to 25 years. The Civil Aviation Authority (CAA), the UK aviation regulator, confirmed that it has approved Heathrow Airport Limited (HAL) to recoup these expenses through increased fees imposed on airlines, which are typically passed on to travelers through ticket prices.
The regulator’s decision also includes provisions for a rival expansion plan, Heathrow West, led by property billionaire Surinder Arora. The scheme, which competed with HAL’s proposal before the government endorsed Heathrow’s third runway in late 2025, will be able to reclaim £4.1 million of its early development costs. The CAA said this measure is intended to maintain competition in the airport expansion process, with the repayment funded through additional charges at Heathrow.
Current airport charges are approximately £26.22 per passenger. Following the CAA’s ruling, these fees are expected to rise by about 15 pence per passenger starting in 2028 and could increase to around 30 pence in subsequent years. HAL estimates the total cost of building the third runway at roughly £33 billion. Once completed, the expansion would increase Heathrow’s annual capacity to accommodate up to 150 million passengers and 756,000 flights, which includes relocating the M25 motorway.
The decision has drawn concern from airline operators, who argue that the early recovery of expansion costs could make the project financially unviable and lead to airfare increases that may be burdensome for consumers. British Airways, the largest carrier operating at Heathrow, expressed worries that the move risks making expansion “unaffordable for consumers” and inconsistent with a credible economic benefits case. Airlines have long criticized Heathrow for having some of the highest charges of any global airport, arguing that higher fees could undermine competitiveness.
Responding to these concerns, Tim Johnson, director of consumers and markets at the CAA, emphasized that the decision was intended to balance facilitating timely progress on the airport’s development while protecting passengers from undue cost increases. A spokesperson for Heathrow highlighted that the expansion would provide increased travel options for passengers and offer significant economic benefits across the UK.
While the immediate increase in charges per passenger is relatively modest, industry analysts caution that cumulative planning and construction costs could result in more substantial fee rises over time. Preliminary estimates suggest that total planning expenses related to the expansion could approach £1 billion, with passenger charges potentially reaching £30 or more per traveler in future years, not including additional costs once the runway is operational. This raises concerns about the potential for the extended recovery period to impact ticket prices and Heathrow’s position in the global aviation market.