CAA Allows Heathrow to Recover £320 Million Expansion Costs

The Civil Aviation Authority (CAA) has permitted Heathrow Airport Limited (HAL) to recover up to £320 million in early planning and design costs for its third runway project. This recovery will be executed by increasing charges to airlines, which are expected to result in ticket price increases of 15p per passenger in 2028, potentially rising to 30p in subsequent years over a 20-to-25-year period.

To promote competition, the regulator also authorized the rival Heathrow West project, led by Surinder Arora, to recover approximately £4.1 million in costs incurred up to November 2025. The UK government has identified HAL's £33 billion privately financed scheme as the preferred option, with aims to complete construction by 2035.

British Airways warned that these early cost recoveries could make the expansion unaffordable for consumers. Meanwhile, some politicians have criticized the project for diverting infrastructure investment away from northern England. HAL maintains that the expansion will increase capacity by 50% and provide a national economic boost.

Tim Johnson, the CAA's Director of Consumers and Markets, defended the ruling, stating that safeguards and efficiency reviews are in place to ensure passengers only pay for justified costs.