After the aviation regulator ordered that the airport reduce the fees charged to airlines, passengers will now pay less when flying into and out of Heathrow.
The Civil Aviation Authority (CAA), on Wednesday, ordered Heathrow to reduce the amount that it charges carriers in the coming year and year after. This is a deeper cut than what was previously announced.
According to previously announced changes, the cap on what Heathrow can charge carriers per passenger this year will drop from £31.57 down to £26.78.
Heathrow’s maximum fee has been reduced by more than the previous estimate.
CAA proposed previously caps of £25.24 per passenger and £25.28 for 2025 and 2026, respectively. The CAA has now reduced these to £23.72 (for 2025) and £23.70 (for 2026).
In practice, the fees are transferred to consumers via air fares.
Heathrow and a few airlines had challenged the CAA’s previous cap decision last year with the Competition and Markets Authority.
The airport advocated a higher rate per passenger of £42. However, British Airways and Delta Air Lines argued that it should not be more than £20.
Heathrow has been accused by airlines of abusing its position in the market. Heathrow bosses claim that higher fees are necessary to fund investments in infrastructure maintenance and modernisation.
After these challenges, the CMA mostly ruled in favor of the CAA’s proposals but instructed it to reconsider certain calculations.
The CAA announced on Wednesday, that in the wake of this ruling, it had re-examined the numbers and come up with new suggestions “in the interests of consumers”.
Changes include an inflation-linked cap increase for 2024 of £1.35 per person, as well as further cap reductions by £1.52 in 2020 and £1.58 2026.
The CAA announced that it would be consulting on the new proposals over a six-week period.
Heathrow’s spokesman stated: “We will evaluate the impact of CAA’s recent proposals and respond in due time to the consultation.”