London Heathrow Airport plans to invest £10 billion ($13.6 billion) over the next five years to upgrade its terminals and services after the dominant UK hub slipped in global airport rankings.
Heathrow submitted an investment plan for review to the UK’s Civil Aviation Authority that involves redesigning terminals, improving punctuality through AI tools and reducing its carbon footprint, it said on Friday. The project would increase the number of passengers per year by 10 million, a 12% jump in capacity.
The airport has proposed bumping up landing charges from a current average of £28.46 to £33.26 in 2027 to be able to deliver the project. The increase was critically received by the hub’s two biggest carriers, with Virgin Atlantic saying “it is ultimately consumers and airlines that pay the bill,” while British Airways owner IAG SA called the increase in charges “excessive.”
The plan comes as Heathrow’s major airline customers including British Airways and Virgin Atlantic Airways continue to raise concerns about congested operations and high charges to use the airport’s infrastructure. Heathrow, which served almost 84 million passengers last year, ranks at No. 22 on Skytrax’s list of the world’s 100 top airports, a demotion from 21st place in 2024.
“Our customers want us to improve our international rankings further, as do we,” Heathrow Chief Executive Officer Thomas Woldbye said in a statement. “To compete with global hubs, we must invest.”
In the meantime, Heathrow is pushing ahead with plans to build a third runway after gaining support from the UK government earlier this year. The airport hasn’t yet finished installing next-generation security scanners, which don’t require passengers to remove liquids and electronic items from hand luggage.
The investment plan will run from 2027 until 2031 and is privately funded through a £2 billion equity contribution from shareholders. As part of the project, Heathrow said it will add more lounges, restaurants and shops across the terminals and demolish Terminal 1, which is no longer in use and was originally opened in 1969.
Heathrow submitted an investment plan for review to the UK’s Civil Aviation Authority that involves redesigning terminals, improving punctuality through AI tools and reducing its carbon footprint, it said on Friday. The project would increase the number of passengers per year by 10 million, a 12% jump in capacity.
The airport has proposed bumping up landing charges from a current average of £28.46 to £33.26 in 2027 to be able to deliver the project. The increase was critically received by the hub’s two biggest carriers, with Virgin Atlantic saying “it is ultimately consumers and airlines that pay the bill,” while British Airways owner IAG SA called the increase in charges “excessive.”
The plan comes as Heathrow’s major airline customers including British Airways and Virgin Atlantic Airways continue to raise concerns about congested operations and high charges to use the airport’s infrastructure. Heathrow, which served almost 84 million passengers last year, ranks at No. 22 on Skytrax’s list of the world’s 100 top airports, a demotion from 21st place in 2024.
“Our customers want us to improve our international rankings further, as do we,” Heathrow Chief Executive Officer Thomas Woldbye said in a statement. “To compete with global hubs, we must invest.”
In the meantime, Heathrow is pushing ahead with plans to build a third runway after gaining support from the UK government earlier this year. The airport hasn’t yet finished installing next-generation security scanners, which don’t require passengers to remove liquids and electronic items from hand luggage.
The investment plan will run from 2027 until 2031 and is privately funded through a £2 billion equity contribution from shareholders. As part of the project, Heathrow said it will add more lounges, restaurants and shops across the terminals and demolish Terminal 1, which is no longer in use and was originally opened in 1969.
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