The UK aviation regulator has rejected Heathrow Airport's plans to significantly increase landing fees, proposing instead a modest 1% rise in passenger charges from 2027. The Civil Aviation Authority (CAA) said the average charge per passenger should increase from £28.40 to £28.80 between 2027 and 2031, far below Heathrow's proposed 17% hike to £33.26.
The CAA argued that Heathrow can fund its multibillion-pound upgrade without steep ticket price increases. Selina Chadha, group director of consumer markets at the CAA, stated: 'Our primary duty is to protect consumers... our proposals strike the right balance between keeping passenger prices fair, while enabling the airport to make the investment needed to improve services for the future.'
Heathrow had sought approval to spend up to £10bn to handle an extra 10 million passengers annually by 2031, including modernising Terminal 5. However, the CAA proposed a lower investment range of £5.4bn to £6.1bn, focusing on projects like upgrading the electrical system after a fire at a nearby substation caused a power cut last year, leading to over 1,300 flight cancellations.
Thomas Woldbye, Heathrow's chief executive, said the airport would review the CAA's proposal, warning it 'may force choices that create trade-offs for service and delay delivery.' Meanwhile, British Airways' owner, International Airlines Group (IAG), criticised the rise, saying passengers would fund 'exorbitant investor returns' for Heathrow's shareholders, including French private equity group Ardian and Middle Eastern sovereign wealth funds.
The CAA will publish its final proposals in November, with a final decision expected in April 2027. The regulator's plans do not include Heathrow's proposed third runway, which has an estimated cost of £49bn.
