London's Heathrow eyes higher fees for £10b upgrade

It will add another 10 million passengers per year by 2031 at Europe’s busiest airport

Published Fri, Jul 11, 2025 · 08:31 PM

London’s Heathrow Airport on Friday (Jul 11) said it plans to invest £10 billion (S$17.2 billion) over the next five years in upgrades to boost passenger numbers, largely funded by higher charges to airlines.

A statement said the plans, which are subject to approval by the UK’s Civil Aviation Authority (CAA), would add another 10 million passengers per year by 2031 at Europe’s busiest airport.

Of the £10 billion, £2 billion will come from shareholders, while the remainder will be financed through higher charges paid by airlines – costs that are often passed on to passengers.

Heathrow said it plans to increase the fee levied on airlines to an average of £33.26 per passenger.

The CAA, which first needs to agree the plans, has previously asked Heathrow to reduce fees charged to carriers.

“This major infrastructure programme marks Heathrow’s most significant transformation in over a decade,” said chief executive Thomas Woldbye.

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“To compete with global hubs, we must invest,” he added.

Heathrow said the upgrades would include faster security and baggage handling, as well as new lounges, shops and restaurants within existing terminals.

Separately, Heathrow recently won UK government backing to build a third runway as it suffers from stretched capacity.

Building that new runway will involve sizeable costs and likely trigger fresh upheaval as environmentalists oppose its construction. AFP

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