Travel industry leaders have been swift to respond as chancellor Rachel Reeves confirmed government backing for a third runway at Heathrow, the reopening of Doncaster Sheffield airport and likely support for expansion at Gatwick and Luton airports in her ‘kickstart economic growth’ speech.
Reeves argued that the debate over an extra runway at Heathrow has run on for decades and there has been no progress on new runway in UK in 80 years.
“We cannot duck the decision any longer – now the case is stronger than ever,” she said, pointing out that the development could create 100,000 jobs.
Meanwhile, there are two live decisions on Luton and Gatwick which will be made by the transport secretary shortly, Reeves added.
Abta chief executive Mark Tanzer said: “Abta welcomes the government’s announcement approving airport expansion.
“The government has said it wants to remove logjams to development and barriers to economic growth, thereby helping the UK economy to grow. Outbound travel will have a vital role in helping to create and maintain this growth; in 2023, it generated £51.6bn for the UK economy, supporting 818,000 jobs throughout the country.
“To deliver growth in aviation while meeting environmental goals we need Government support – both in policy and finance – to help the industry develop solutions, such as developing a domestic sustainable aviation fuel industry.
“The travel industry is making good progress in these areas, but the decision on airport expansion today brings back into focus the need for the sector to work with Government so that we both deliver growth and contribute to the UK’s roadmap to net-zero.”
Advantage Travel Partnership chief executive Julia Lo Bue-Said said: “We’re pleased to see the government supporting essential infrastructure growth across several of the UK’s major airports including the third runway at Heathrow.
“These expansions will significantly improve the passenger experience for both leisure and business travellers with a wider range of departures, increased competition for pricing, and reduced congestion and delays. Alongside this, it will enhance connectivity to global markets, driving both tourism and business investments.
“Having the necessary facilities available to maintain a thriving inbound and outbound travel industry is vital in order for the UK to remain a major international hub and to continue driving economic growth.”
Amex GBT president Drew Crawley said: “Our data ranks London as the top destination for business travel in EMEA.
“With 15 million business travellers already passing through Heathrow each year, a third runway can unlock the UK’s ability to move people and goods – which is fundamental to sparking the economic growth that the government is determined to deliver.
“We support this expansion, it now needs to be delivered cost-effectively and at pace.”
Ian Sinderson, chief executive at TMC ATPI, welcomed the government’s decision to improve connectivity at Heathrow.
“Among ATPI’s customers, Heathrow continues to dominate, serving over 103,000 of our customers in 2024 and achieving a 12%-plus year-on-year growth in departures, solidifying its status as the key hub for corporate travellers,” he said.
“The UK government’s decision to back expansion at Heathrow, Gatwick and Luton marks a major, positive shift for the future of business travel.
“This decision to expand Heathrow in particular will help alleviate current capacity pressures and future-proof infrastructure for increasing demand, especially as airlines shift to smaller, more fuel-efficient aircraft.
“With sustainable aviation technology advancing rapidly and new sustainability reporting directives requiring businesses to demonstrate active efforts in reducing emissions, the UK has a unique opportunity.
“By aligning responsible infrastructure expansion with net-zero ambitions, it can lead the way in creating a more connected and sustainable future for business travel.
“As such, ATPI welcomes these developments, which promise enhanced global connectivity and smoother, more efficient travel for corporate clients in the years ahead.”
Heathrow chief executive Thomas Woldbye said: “We welcome the chancellor’s support for the aviation industry and recognition of the critical role we play for the economy and in delivering growth across the UK.
“Heathrow is the UK’s gateway to growth and prosperity. A third runway and the infrastructure that comes with it would unlock billions of pounds of private money to stimulate the UK supply chain during construction.
“Once built, it would create jobs and drive trade, tourism and inward investment to every part of the country. It would also give airlines and passengers the competitive, resilient hub airport they expect while putting the UK back on the map at the heart of the global economy. With strict environmental safeguards, it would demonstrate that by growing our economy responsibly we can ensure our commitments to future generations are delivered.
“This is the bold, responsible vision the UK needs to thrive in the 21st century, and I thank the government and chancellor for their leadership. It has given us the confidence to confirm our continued support for expanding Heathrow.
“Successfully delivering the project at pace requires policy change – particularly around necessary airspace modernisation and making the regulatory model fit for purpose.
“We will now work with the government on the expected planning reform and support ministers to deliver the changes which will set us on track to securing planning permission before the end of this Parliament.”
Rob Bishton, chief executive at the UK Civil Aviation Authority, said: “A new runway will cost the taxpayer dearly, as Gatwick is not looking to fund any improvements in infrastructure to assist with transporting 80 million-plus flyers, plus inward-migrating workers.”
“We recognise the vital role that aviation plays in the growth of the UK economy, and the role of the aviation regulator has in enabling that. Expanding the sector will give passengers more choice and build resilience as well as contributing to the UK’s productivity.
“In doing so, it will be important for the sector to remain safe and grow in a responsible way. In undertaking this regulatory role, we will work with Government and the aviation sector.”
A Virgin Atlantic spokesperson said: “A thriving aviation sector is crucial to the success of the chancellor’s growth agenda. Heathrow is critical national infrastructure and the UK’s only hub airport, enabling connectivity and trade to global markets, yet it remains the world’s most expensive airport with a service that falls short.
“We are supportive of growth and expansion at Heathrow, if, and only if, there is fundamental reform to the flawed regulatory model to ensure value for money for consumers, affordability for UK plc and support a competitive UK aviation industry.”
Loganair chief executive Luke Farajallah said:“As the UK’s largest regional airline, Loganair fully supports the addition of a third runway at Heathrow, and recognises the significant benefits it will bring to the UK’s economy. A third runway will not only improve international connectivity but crucially will be a game-changer for domestic connectivity.
“It is vital that the expansion does not come at the expense of connecting smaller airports and communities across the UK.
“By ensuring that domestic routes continue to thrive alongside global access, we can help drive tourism, trade, and business to achieve economic growth.”
Tourism Alliance executive director Richard Toomer said: “The Tourism Alliance welcomes the chancellor’s speech today, setting out the government’s support for the expansion of our airports, and do to so in an environmentally sustainable way, in recognition of the fact that this will drive economic growth, promote trade, and support inbound and outbound tourism.
“Improving connections to important tourism markets such as America and growing links to destinations like China and India are crucial if we are to capitalise on the potential of those markets.
“It was especially good to hear the chancellor talk about the need for a third runway at our vital hub airport, Heathrow, and also recognise the importance of regional airports, including at Doncaster Sheffield.
“We are also hopeful of positive announcements about Gatwick and Luton in the very near future. None of these should be thought of as mutually exclusive – tourists need options and these airports all fulfil very important and different roles.
“For tourists – both leisure and business – this is not just about extra runways or increasing capacity. It is also about ensuring the best possible end-to-end travel experience, with less disruption, better welcome, and continuing to improve ground connectivity too.
“Tourists will continue to want to visit our country for all it has to offer, but we also must ensure we are competitive against other destinations on price, convenience, welcome, and – crucially – connectivity. Today’s speech by the chancellor will hopefully move us towards that goal.
“However, we also need her to follow through on other areas, such as reversing the decision to increase the fee for an Electronic Travel Authorisation (ETA) for our non-visa nationals by 60%, taking steps to reduce our uncompetitive visa costs, and supporting tourism businesses struggling as a result of her recent budget announcements.”
A Manchester Airports Group spokesperson said: “MAG welcomes the Chancellor’s recognition of the pivotal role airports have to play in kick-starting the economy and raising living standards across the UK.
“As an island trading nation, we need ever better connections with the world and thriving airports in all parts of the country. That means backing our aviation sector while helping it achieve its net zero targets.
“We can start by maximising the potential of existing runways across the UK. At MAG, we plan to invest £2.5 billion in Manchester, London Stansted and East Midlands over the next five years – the largest private investment in transport infrastructure outside the M25. That will create jobs, drive trade and attract immediate inward investment in the North, South and Midlands.
“We need a policy environment that encourages private investment in airports and will work with Government to ensure we all maximise the contribution aviation makes to its economic vision for everyone in the UK.”
ACI Europe director generalOlivier Jankovec said: “By supporting a third runway at London Heathrow, the UK government is seizing the power of air connectivity as one of the key levers for boosting the country’s economy and reinforcing its global position.
“We now call on the government to expedite the approval of expansion at London Gatwick and London Luton airports.
“With every 10% increase in air connectivity yielding a 0.5% gain in GDP and 1.6% rise in employment, allowing airports to expand where needed to meet future demand is all about effectively supporting wider economic activity — in particular trade, inward investment and tourism.
“This is both highly relevant and timely, considering the new era of geo-economic competition we now face. Ultimately, this is about future-proofing the country.”
Paul Le Blond, chair of the Chartered Institute of Logistics and Transport aviation policy group, said: “The first priority must be updating the 2018 Parliament-approved Airports National Policy Statement to reflect current aviation sector performance against legally-binding Carbon Budgets.
“We see an opportunity to implement a measured approach, focusing on short and medium-term development of existing runways whilst safeguarding space for a third runway. This balanced strategy would support increased passenger and cargo capacity, driving local employment, regional connectivity and national economic growth.
“Any expansion strategy must prioritise public transport integration, leveraging existing transport hubs and accommodating new rail links. The development should include modernised terminals and new gateway facilities for both the northern and southern perimeters. Crucially, all environmental impacts—including noise, local air quality, and greenhouse gas emissions—must remain within statutory limits.
“Whilst the expansion would be privately funded through passenger and shipping revenues, government support through policy frameworks and strategic rail investment will be essential to unlock private sector investment.”
Lobby group Campaign Against Gatwick Noise and Emissions (CAGNE), which opposes plans to introduce a second runway at the airport into regular use, said: “Gatwick is a major exporter of sterling overseas, through low-cost leisure airlines that are reliant on being ‘cheap’, so does not directly help the UK purse, as the chancellor seems to believe.
“She needs to read the full reports, which were only finalised on January 17, and not just the spin from this ‘bucket’n’spade’ airport.