British Airways and Virgin Atlantic question funding model for Heathrow Airport expansion

Sean Doyle, Chairman and Chief Executive
Sean Doyle, Chairman and Chief Executive - British Airways
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London Heathrow Airport’s plan to build a third runway is facing resistance from its two largest carriers, British Airways and Virgin Atlantic. The airlines are calling for changes to the airport’s financial and regulatory structure before any expansion goes ahead.

Both British Airways and Virgin Atlantic argue that Heathrow is already an expensive hub for airlines due to high charges. According to data from Cirium, British Airways and Virgin Atlantic have scheduled 8,996 and 850 departures respectively at Heathrow in February 2026, making them the airport’s top two operators.

The airlines are concerned that they will end up paying for most of the expansion costs while their competitors benefit. Former Virgin CEO Shai Weiss said: “Despite having the highest passenger charges in the world, Heathrow is failing consumers, airlines and the UK economy, with ageing facilities and a declining customer experience.”

Heathrow’s fees have been under scrutiny as passengers of these two airlines reportedly paid £1.1 billion more ($1.5 billion) than if they had flown through other major European airports. International Airlines Group (IAG) CEO Luis Gallego stated that Heathrow’s “experience does not match the cost” for guests.

The airport has seen record passenger numbers recently, leading some to question whether it offers value for money as higher costs are often passed on to travelers through ticket prices. However, Heathrow CEO Thomas Woldbye disagrees with claims of overcrowding at the airport. He told reporters that congestion is due to people moving inefficiently through terminals rather than excessive passenger numbers: “British people choose the left and Europeans keep to the right, so everybody [crashes] into each other,” he explained.

Woldbye also remains uncertain about proceeding with the new runway project.

Meanwhile, despite criticism over its expansion plans, Heathrow reported its busiest January ever this year with 6.5 million passengers—a 2% increase compared to last year—and handled 125,000 tonnes of cargo in one month.

Earlier today, Heathrow announced it would set a target of using 5.6% Sustainable Aviation Fuel (SAF) in 2026—2% above current UK requirements—with £80 million ($108.8 million) available as incentives “to bridge the cost gap between traditional kerosene and SAF.”

Simple Flying provides news coverage on aviation developments such as these through contributions from journalists and experts around the world according to its official website. The site offers analysis and updates aimed at both enthusiasts and professionals globally as part of Valnet Publishing Group (source). Simple Flying delivers daily aviation news including airline reviews and industry guides for a worldwide audience (source).



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