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Published Jul 29, 2026Updated Jul 293
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Heathrow approved to add 15p per passenger for third runway planning costs
The Civil Aviation Authority has approved Heathrow Airport's recovery of £320m in early third runway development costs through higher airline charges, adding an estimated 15p per passenger to ticket prices from 2028 and rising to 30p in subsequent years. Airlines have raised concerns about affordability, while the regulator said safeguards including cost caps and efficiency reviews would protect consumers.
Quick Facts
- CAA approved Heathrow's cost recovery request
- Heathrow can recover £320m in early development costs
- Heathrow West can recover £4.1m in costs
- Higher airline charges will be passed to passengers
- Government selected Heathrow's proposal over Arora's alternative



The Civil Aviation Authority (CAA) has approved Heathrow Airport's request to recover £320m in early development costs for its proposed third runway project by charging airlines higher fees, which are expected to add approximately 15p per passenger to ticket prices starting in 2028. The cost recovery is projected to rise to around 30p per passenger in subsequent years over a period of 20 to 25 years. These charges cover planning and design work completed during 2025 and 2026.
The CAA's decision also allows Heathrow West, a rival expansion proposal led by property billionaire Surinder Arora, to recover £4.1m in costs it spent before the government selected Heathrow Airport Limited's £33bn scheme as its preferred option in November 2025. Arora's refund will be paid from Heathrow's additional charges. Current airport charges stand at approximately £26.22 per passenger, and the CAA has capped airline fees at between £27.20 and £30.50 per passenger for 2027-2031.
Airlines have expressed concerns about the cost increases. British Airways, Heathrow's largest airline customer, stated that early cost recovery creates a risk that expansion would be "unaffordable for consumers." Airlines have repeatedly complained that Heathrow already charges the highest fees of any airport in the world. Consumer advocates have also raised objections, with Which? Travel noting that the increases are being added to already high airport charges and that Heathrow has limited competition on many routes.
The CAA said its decision includes safeguards to protect consumers, including cost caps, independent scrutiny, efficiency reviews, and transparency and cost reporting requirements. Tim Johnson, the CAA's director of consumers and markets, stated the decision "strikes a balance between supporting the delivery of benefits to consumers through timely progress on Heathrow expansion, whilst protecting them from undue increases in costs."
Heathrow's proposed third runway would increase the airport's capacity by approximately 50% to accommodate 756,000 flights and 150 million passengers annually. The £33bn project includes additional terminal space and a £1.5bn motorway diversion scheme for the M25. A government planning decision is expected by 2029, with the former Chancellor Rachel Reeves expressing determination to begin construction by 2035. The expansion has faced long-standing opposition from climate campaigners, local residents, and some politicians, who cite concerns about air pollution, noise pollution, and climate commitments.
Why This Matters
Heathrow's approved cost recovery adds measurable charges to UK airport fares: 15p per passenger starting 2028, rising to 30p over 20–25 years, affecting ticket prices and airline operations. The decision follows government selection of Heathrow's £33bn expansion over a rival proposal; a 50% capacity increase to 150 million passengers annually is contingent on a planning decision by 2029 and potential construction start by 2035. Airlines including British Airways have flagged affordability concerns; the CAA has imposed cost caps (£27.20–£30.50 per passenger for 2027–2031) and efficiency review requirements to mitigate consumer impact.
Timeline & Sources
Jan 1, 2003
WireGovernment backing for third runway plans announced
Jul 29, 2026
WireCivil Aviation Authority approved Heathrow's £320m cost recovery request
Jan 1, 2028
WireAirport charges increase by approximately 15p per passenger begins
Sources
- Ticket prices set to rise by 15p as Heathrow able to recover runway project moneyBBCMediaJul 29, 2026
- Heathrow passengers face higher fares as airport can recover early expansion plan costsThe GuardianMediaJul 29, 2026
- Heathrow can add 15p per passenger to fund £3bn runway expansionThe TimesMediaJul 29, 2026