The UK’s Civil Aviation Authority (CAA) has proposed only allowing London Heathrow to raise charges by around 1.4 per cent from next year, rather than the double-digit rise the airport wanted to help fund its £10 billion renovation project.
The CAA said that its “initial” proposal for Heathrow’s fees would see the UK hub’s charges capped at between £27.20 and £30.50 per passenger for the five year period from the start of 2027 to the end of 2031. This would represent an average charge of £28.80, compared to the current average fee of £28.40.
Heathrow had wanted to increase its landing charge by around 17 per cent to an average of £34.20 per passenger during the 2027-2031 period to help pay for the renovation project, which is not connected to the longer-term £49 billion project to build a third runway at the airport.
Conversely, airlines had called for Heathrow’s charges to be reduced to an average of £23 per passenger for the next five years, which would represent an 18 per cent drop on current fees. Carriers have warned that higher charges would result in increased airfares.
Selina Chadha, the CAA’s group director of consumer and markets, said: “Our primary duty is to protect consumers and at the heart of our proposals is doing the right thing for passengers using Heathrow Airport, while supporting sustainable growth, investment and efficiency.
“Our proposals for the airport charges levied by Heathrow on airlines strike the right balance between keeping passenger prices fair, while enabling the airport to make the investment needed to improve services for the future. We encourage all stakeholders to provide us with their views on our initial proposals.”
Heathrow CEO Thomas Woldbye said that the CAA’s proposals for the next price cap could create the need for “trade-offs” in its current development plans.
“We will now review the CAA’s initial proposal in detail to fully understand the implications for delivering the innovation, progress and improvements customers expect,” added Woldbye. “On the face of it, the CAA’s proposal may force choices that create trade-offs for service and delay delivery.”
The CAA is planning to publish its final proposals for Heathrow’s 2027-2031 price cap in November, followed by a final decision on the fees in April 2027.