Airlines angry at planned rise in Heathrow passenger charges

Airlines have reacted angrily to Heathrow Airport’s plans to raise passenger charges as part of its investment plan to handle an extra 10m passengers per year by 2031.

Heathrow wants to set passenger charges at an average of £33.26 between 2027-2031, compared with what it claims is an average of £28.46 between 2022-2026, although this figure is rejected by airlines.

A Virgin Atlantic spokesperson said: “Heathrow is already the most expensive airport in the world and this proposal demonstrates Heathrow’s inability to invest capital wisely and efficiently.”

Heathrow chief executive Thomas Woldbye said: “Our customers want us to improve our international rankings further, as do we.”

He added: “To compete with global hubs, we must invest.”

Heathrow is Europe’s busiest airport, with more than 83.9m passengers travelling through its terminals in 2024. It just experienced its busiest May on record.

On Friday, Heathrow Airport Limited (HAL)’s 2027-2031 £10bn business proposal was submitted to the Civil Aviation Authority (CAA), which determines the cap on per-passenger landing charges that airlines must pay to Heathrow.

Airlines pass on the cost of these to passengers through fares.

The plan would create new space within existing terminals equivalent to 10 football pitches, enabling new lounges, restaurants and shops to be built.

It would also result in faster security and baggage handling, according to the airport.

The airport is seeking to demolish the building previously used as Terminal 1, extend Terminal 2, and build a new southern access road tunnel.

Once complete, the project would enable Heathrow to increase its passenger capacity by 12%, equivalent to 10 million more travellers annually.

A Virgin Atlantic spokesperson said: “We totally agree that Heathrow needs to do better and dramatically improve the customer experience if is to become the airport that UK consumers deserve.

“However, only Heathrow with its monopoly power as the UK’s only hub airport, would think that this £10bn investment plan represents value for money and that’s before any third runway expansion costs are factored into the equation.

“Heathrow says that its shareholders will contribute £2bn equity but it is ultimately consumers and airlines that pay the bill, with Heathrow’s proposal to increase passenger charges by 28% in 2027 compared to today.

“Heathrow is already the most expensive airport in the world and this proposal demonstrates Heathrow’s inability to invest capital wisely and efficiently.

“Therefore, we continue to call on the CAA to undertake an urgent fundamental review of Heathrow’s economic regulatory model, which is simply not fit for purpose.”

IAG, which owns British Airways, Iberia, Vueling, Aer Lingus, said HAL’s plan “requires significant revision”.

A spokesperson said: “The proposed 25% increase in charges is excessive, particularly given that Heathrow is already the most expensive airport in the world and this plan does not increase capacity.

“The suggested £10bn investment would be paid for by passengers and airlines, raising serious concerns about affordability and value for money.”

Heathrow chief executive Thomas Woldbye said: “We’re making good progress on our strategy to become an extraordinary airport – having become Europe’s most punctual major airport so far this year.”