London Heathrow Airport is planning a significant passenger fee increase as part of its £10 billion expansion project, aimed at accommodating 10 million more passengers by 2031. The average landing fee per passenger is expected to rise to around £33.26 over the next five years, up from the current average of £28.46. Despite the increase, Heathrow claims that these charges are still lower in real terms than they were a decade ago.
Major airlines operating at Heathrow, including British Airways and Virgin Atlantic, have criticized the proposed 17% increase in landing fees. They argue that it is unfair for consumers and carriers to bear the cost of the airport’s expansion project, although they recognize the need for improved customer experience.
The expansion will be delivered through a UK-based supply chain, with 60% of suppliers located outside London and the South East. This initiative aims to boost jobs and businesses nationwide without burdening taxpayers, as it is entirely funded by private investment. A £2 billion equity injection from shareholders is expected to support cost efficiency.