Heathrow CEO Warns Investors May Abandon Third Runway Project

Heathrow Airport Chief Executive Thomas Woldbye warned that international investors may reassess their commitment to the airport's third runway project if Prime Minister Andy Burnham does not provide political certainty by the end of the year. Woldbye stated that shareholders "cannot wait forever" for a decision on the expansion, which would increase capacity to 150 million passengers and 756,000 flights annually.

Estimates for the project range from £33 billion to £49 billion, the latter including terminal improvements and a £1.5 billion diversion of the M25. Major investors, including the Qatar Investment Authority, Saudi Arabia’s Public Investment Fund, and China Investment Corp, are expected to decide in the new year whether to submit a formal planning application. Woldbye noted that while September passenger traffic dropped 2.3% to 7.2 million—largely due to a 20.1% plunge in Middle Eastern travelers amid the Iran war—overall demand continues to outstrip capacity.

Prime Minister Burnham has declined to confirm his support, stating that any decision is subject to consultation and the planning process. He has suggested that increasing capacity at Manchester Airport might be a higher priority to ensure regional investment. This position contrasts with Chancellor Rachel Reeves, who has vociferously supported the project to boost the economy. Meanwhile, London Mayor Sadiq Khan remains firmly opposed to the expansion. The government is currently spending £3 million on banking consultants to evaluate the project's economic viability.