Ticket prices set to rise by 15p as Heathrow able to recover runway project money
Heathrow Airport will be allowed to charge airlines more for its services in a bid to recoup money spent on the early stages of its third runway project.
The aviation regulator is allowing the airport to refund up to £320 million to airlines through higher airport charges for each passenger. This is likely to add 15p to ticket prices in 2028, rising to 30p in later years.
The bidder who unsuccessfully put forward Arora Group’s Heathrow West design, which included a shorter runway, will also be allowed to recover its £4.1 million cost.
The Civil Aviation Authority (CAA) and Heathrow said measures would be taken to protect consumers from unfair costs.
The CAA has already proposed that Heathrow’s airline charges be capped at between £27.20 and £30.50 per passenger for 2027-2031.
The costs recovered at this stage are only for the early planning and design of the track in 2025 and 2026.
It will not be clear for a while how much the cost of building the track will affect ticket prices.
Tim Johnson, CAA’s director of consumer and markets, told the BBC: “We’ve announced that the first tranche of costs will be available to passengers to help plan for this. That’s up to a maximum of £320 million.”
Heathrow airport will be able to cover the costs of Heathrow West until November last year by adding them to the airport fees.
The CAA said allowing these costs to be offset would see the maximum airport charge per passenger rise by around 15p in 2028, rising to an estimated 30p in subsequent years.
Rory Boland, editor of Which? Travel said that in an environment where many people are struggling with travel prices, the extra costs being passed on to customers are “not welcome”.
“These increases may seem small, but they already add up to some of the highest airport fees in the world,” he said.
“Heathrow has little competition on many routes, leaving passengers with little alternative if fares continue to rise,” he added.
A Heathrow spokesman said the third runway would “make travel more affordable and offer passengers more choice, while providing a real economic boost to every region and country of the country”.
“We are carefully evaluating CAA proposals and will make investment decisions accordingly,” the spokesman added.
In November, the government announced it preferred the airport’s proposed £33 billion plan over Arora’s alternative plan.
At the time, the Department for Transport said Heathrow’s own proposal presented the most viable option and the “greatest prospect” of gaining a decision on planning approval in this parliament.
