Heathrow seeks approval to hike landing fees

(Sharecast News) - Heathrow Airport wants to raise landing fees as part of a £10bn investment programme intended to increase capacity and boost passenger numbers, it was confirmed on Friday. The airport - Europe's busiest - has asked the Civil Aviation Authority to approve a 17% rise in the fees it charges airlines to £33.26 per passenger.

The increase is part of a series of proposals submitted to the regulator outlining Heathrow's expansion plans between 2027 and 2031.

They include creating capacity for up to 10m more passengers, a 12% increase, and improving the offering in existing terminals. It also wants to increase freight capacity by 20%.

Thomas Woldbye, chief executive, said: "Our five-year plan will further boost operational resilience, deliver the service passengers expect and unlock the growth capacity airlines want, with stretching efficiency targets and a like-for-like lower airport charge than a decade ago.

"This private investment will create jobs and drive national growth."

However, airlines - which have long complained that Heathrow is already one of the world's most expensive airports - quickly pushed back.

International Airlines Group called the proposed increase "excessive", arguing that the £10bn investment would ultimately be "paid for by passengers and airlines, raising serious concerns about affordability and value for money".

IAG owns British Airways, Aer Lingus and Iberia.

Virgin Atlantic said: "Only Heathrow, with its monopoly on power as the UK's only hub airport, would think that this £10bn investment plan represents value for money - and that's before any third runway expansion costs are factored into the equation."

The CAA said it would now consider the proposals before giving its response.

The update came as Heathrow posted passenger numbers for June. There were 7.4m terminal passengers last month, down 1%, which it attributed to "global events", adding: "Overall, demand continues to grow."

A total of 39.9m have flew through Heathrow in the six months to June.

Earlier this year the government gave its clearest indication yet that it would back a long-anticipated third runway at Heathrow, as part of its wider UK growth agenda.

The plan is controversial, however, with environmental groups in particular arguing against expanding air travel.

A formal planning application is expected to be put before Parliament by 2029.