Heathrow can recover early project costs through higher fees

LONDON - Early project planning for the third runway at Heathrow Airport carries an estimated 320 milllion GBP price tag. UK aviation regulator CAA will allow the airport operator to claw back these costs through higher fees.

CAA permits Heathrow Airport to increase fees to recover early planning expenses for its third runway up to 320 million GBP. This might increase ticket prices for Heathrow flights by 15p in 2028 and 30p over the course of future years.

Heathrow airport received regulatory approval to proceed with a 3,500m northwestern runway construction and additional infrastructure in late 2025.

The project will unlock capacity "to serve up to 756,000 flights and 150 million passengers" up from an expected 85.1 millionen passengers in 2025, Heathrow said. Besides the third runway expansion plans include a "brand-new terminal T5X, expanding Terminal 2 and three new satellite terminals".

Total project cost will amount to a rounded 49 billion GBP: 21 billion GBP for the new runway and airfield infrastructure - up from 14 billion GBP in 2018 due to construction inflation - 12 billion GBP for new terminal and stand capacity and 15 billion GBP for modernising the current airport through expanding Terminal 2 and ultimately closing Terminal 3.

Runway construction is expected to start in 2029 and be completed by 2035. The 3,500m runway, favored by Heathrow owners, will require an additional M25 tunnel and new bridges.