The Civil Aviation Authority has approved Heathrow Airport’s request to recover costs associated with the preliminary planning and design phases of its proposed third runway project through increased airport charges to airlines. The regulator determined that airlines can be charged additional fees for each passenger, with these costs expected to translate into approximately 15 pence added to ticket prices in 2028, potentially rising to 30 pence in subsequent years.
The recoverable costs total up to £320m and cover only the early-stage work conducted during 2025 and 2026. Additionally, Arora Group’s unsuccessful rival proposal, known as Heathrow West, will be permitted to recover £4.1m in expenses through the same mechanism. The CAA stated that Heathrow airport will also collect costs associated with Heathrow West’s submission through November of the previous year by incorporating these amounts into airport charges.
Both Heathrow and the CAA emphasized that consumer protections would be implemented to prevent unjustified cost increases. These safeguards include mandatory transparency in cost reporting, regular financial disclosure requirements, and independent expert verification of expenditures. The regulator’s decision was framed as balancing support for timely project advancement with protection against excessive cost burdens on passengers.
The third runway expansion has been under consideration for decades, with government backing formally announced in 2003. The scheme currently favored by the government, valued at £33bn, was selected over competing proposals in November based on its deliverability and likelihood of obtaining planning approval within the current parliamentary term. The government’s target is to secure a planning decision by 2029. The project has faced sustained opposition from environmental advocates, local residents, and various political figures who cite concerns regarding air pollution, noise impacts, and potential conflicts with climate commitments.
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