International Airlines Group (IAG) CEO Luis Gallego has raised concerns that the planned third runway at London Heathrow Airport could remain underused due to the high costs that may be passed on to airlines and passengers. The estimated cost of developing the new runway is close to $28 billion, with overall infrastructure investments by Heathrow expected to reach $66 billion.
Heathrow’s third runway proposal, which has been under discussion for over twenty years, was formally submitted this week. The airport's plan includes a 3,500-meter runway and aims to increase annual passenger capacity to 150 million. Project costs have increased by 50% since a similar proposal in 2019, largely due to rising construction expenses. Heathrow expects to secure planning permission by 2029 and hopes the new runway will be operational by 2035.
Gallego warned that the current regulatory framework could lead to significant price increases for travelers. “With the current regulatory model, it is going to be very expensive for customers,” he said, adding there is a risk of the new runway being empty as a result.
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