Heathrow Airport Plans 17% Landing Fee Hike Sparking Airline Industry Backlash

London’s Heathrow Airport has unveiled plans to raise landing fees by 17%, triggering strong opposition from major airlines concerned about increased costs being passed on to passengers. The proposed increase, detailed in a submission to the Civil Aviation Authority (CAA), would see average charges rise from £28.46 to £33.26 per passenger over a five-year period.

The ambitious £10bn investment programme aims to expand the airport’s annual passenger capacity to 92 million whilst creating additional terminal space for lounges, retail outlets, and dining facilities. Heathrow’s chief executive, Thomas Woldbye, defended the price adjustment, emphasising that the charges remain lower in real terms compared to a decade ago.

International Airlines Group (IAG), British Airways’ parent company, has labelled the proposed increase as “excessive,” highlighting concerns about affordability and value for money at what is already considered the world’s most expensive airport. Virgin Atlantic joined the criticism, pointing to Heathrow’s monopolistic position as the UK’s sole hub airport.

The development plan, covering 2027 to 2031, includes converting 70,000 square metres of non-passenger space and demolishing Terminal 1 to facilitate Terminal 2’s expansion. A new access tunnel to the central terminal area is also planned, with airport shareholders, including French private equity group Ardian, committing £2bn in new equity.

This proposal follows a previous ruling by the UK competition regulator, which mandated Heathrow to reduce landing charges by nearly one-fifth in 2024. The current plan notably excludes any provisions for a third runway, though Labour has signalled support for the expansion, with detailed proposals expected by month’s end.

The airport’s management maintains that this private investment will generate employment opportunities and drive national growth, citing recent improvements in operational efficiency that have positioned Heathrow as Europe’s most punctual major airport this year.