Heathrow's estimated expenses for developing a third runway surge to £1 billion
Heathrow Airport Expansion Faces Criticism and Push for Higher Passenger Fees
Heathrow Airport, already known as the most expensive airport in the world, is facing criticism from airlines and passengers over its plans to raise passenger fees. The airport's executives have requested an additional £320 million (approximately €368 million) in July 2025 to cover the costs of the third runway expansion.
The total cost of expanding and modernising London Heathrow Airport is now expected to reach £49 billion (approximately €56.5 billion). Of this, approximately £21 billion (about €24.2 billion) is allocated for the third runway. The current average charge per passenger at Heathrow is £28.46 (€32.80), and they are pushing to raise it to £33.26 (€38.33) by 2027.
British Airways' parent company, IAG Group, has challenged the increase, describing it as "excessive." Virgin Atlantic has also criticised Heathrow, labelling it as already being the most expensive airport in the world. Heathrow faces the risk of losing airlines and passengers if its fees become too high.
The expansion project, which is expected to accommodate nearly 80% more passengers, faces opposition from various groups, including local residents, environmental activists, and airlines. Despite being fully privately funded, the expansion project receives no taxpayer money.
Heathrow's director of regulations and economics, Mike Kind, stated that the goal of having a third operational runway by 2035 is a government objective, not the airport's. The expansion is projected to increase Heathrow's capacity by at least 30 new routes.
A spokesperson for Heathrow stated that investing early to meet the government's timeline for a new runway within a decade is necessary to unlock benefits for consumers and the country. The projected cost for London Heathrow Airport's third runway is currently over £1 billion (approximately €1.15 billion), and the total projected planning costs for the third runway are now approximately £820 million (around €960 million).
The upfront costs for securing UK planning consents and the inefficiencies of pausing and restarting major infrastructure projects are reflected in the costs of the expansion project. Heathrow Airport is seeking approval to recover the costs through higher passenger fees. Despite the criticism, the airport argues that these costs are necessary to ensure the airport remains competitive in the global market.
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