HEATHROW PERMITTED TO RECOVER £320M THIRD RUNWAY COSTS THROUGH AIRLINE CHARGES

Heathrow Airport has been authorised by the Civil Aviation Authority to recover up to £320m in costs from early planning and design work on its proposed third runway by charging airlines higher fees. The regulator determined that these costs, incurred during 2025 and 2026, can be passed to passengers through increased ticket prices estimated at 15 pence in 2028, rising to 30 pence in subsequent years. Arora Group's unsuccessful rival proposal, Heathrow West, will also be permitted to recoup £4.1m in costs through the airport's charges. The CAA and Heathrow stated that consumer protections would be implemented to guard against unjustified expenses.

The government selected Heathrow's £33bn third runway scheme over Arora's alternative proposal in November, citing it as the most deliverable option with the greatest likelihood of securing planning approval within the current parliamentary term. The costs now approved for recovery relate solely to the planning phase; the financial impact of constructing the runway itself remains unclear. Tim Johnson, the CAA's director of consumers and markets, stated the decision "strikes a balance between supporting the delivery of benefits to consumers through timely progress on Heathrow expansion, whilst also protecting them from undue increases in cost".

A Heathrow spokesperson said the project aims to make travel more affordable and provide passengers with greater choice whilst delivering economic benefits across the United Kingdom. The airport added it was carefully considering the CAA proposals and would make investment decisions accordingly. The full extent of ticket price increases from actual construction work has not yet been determined.