Regulator cuts and curbs Heathrow fees

LONDON - Heathrow airport faces a regulatory setback as its watchdog cuts and caps passenger fee increases even further. UK Civil Aviation Authority outlined new curbs for the 2025 and 2026 periods at Britains largest airport in response to a recent ruling from the Competition and Markets Authority.

The UK Civil Aviation Authority caps Heathrow airline fees at 23.73 GBP per passenger in 2025 and 23.71 GBP per passenger in 2026.

"These changes will lead to Heathrow’s charges decreasing by around 6 per cent or 1.52 GBP in 2025 and 1.57 GBP in 2026," the CAA said.

The regulator has adjusted its initial fee frame to address a Competition and Markets Authority’s (CMA) ruling on a sour dispute between airlines and the airport. Heathrow had outlined fee increases to up to 40.00 GBP per passenger before to fund major infrastructure investments.

Heathrow traffic grew to 81.9mn passengers in the rolling 12 months to the end of June, a 13 per cent uptick.

Meanwhile, Heathrow shareholder structure will change as French private equity group Ardian and the Saudi Arabian state fund take a 38 percent holding in Heathrow at a 3.3 billion GBP price tag.