Heathrow charges to rise to recover early third-runway-expansion costs

Heathrow charges will rise by 15p per passenger in 2028, doubling to 30p in subsequent years as early costs towards a third runway are recovered.

The aviation regulator confirmed it was allowing the recovery of early expansion costs incurred by the London hub in 2026 and 2026 and by alternative runway scheme promoter Heathrow West.

The airport will be subject to a cap of £320 million while Heathrow West will be able to recover £4.14 million of costs incurred in developing its shorter third runway proposal.

The decision relates only to early costs incurred up to the end of 2026 by Heathrow Airport and up to November 2025 by Heathrow West.

The regulator said a range of "safeguards" designed to monitor cost efficiency would include transparency and cost reporting requirements, and assurance by independent experts.

The final impact on charges will be determined as part of the next Heathrow price control review, the Civil Aviation Authority noted.

“Allowing the recovery of early costs incurred by Heathrow during 2025 and 2026, and by Heathrow West during 2025, will increase the maximum airport charge per passenger by around 15 pence in 2028, rising to an estimated 30 pence in subsequent years,” the CAA confirmed.

The regulator will consult later this year on arrangements for costs incurred from 2027 onwards. The consultation will also consider costs incurred by Heathrow West during 2026 in progressing its  application.

The authority’s consumers and markets director Tim Johnson said: “Our decision strikes a balance between supporting the delivery of benefits to consumers through timely progress on Heathrow expansion, whilst also protecting them from undue increases in costs. 

“The costs Heathrow can recover are capped, independently scrutinised and subject to efficiency reviews, helping ensure that passengers only pay for efficient costs that are justified."

A spokesperson for the airport said: “Heathrow expansion is about more than just a runway - this project is about making travel more affordable and giving passengers more choice, while providing a real economic boost to every region and nation of the country. 

“We have been clear from the start that unlocking the private investment that will deliver these benefits requires a supportive regulatory framework. We are carefully considering the CAA proposals and will make investment decisions accordingly.”