Heathrow's estimated expenses for planning a third runway surge to £1 billion

Heathrow Airport, the UK's busiest airport, is pushing ahead with plans to expand and modernise, with the goal of having a third operational runway by 2035. The government has set this objective, not Heathrow Airport itself.

The third runway is expected to increase the airport's capacity by at least 30 new routes, accommodating nearly 80% more passengers. However, the expansion project faces significant challenges and opposition from various groups, including local residents, environmental activists, and airlines.

The upfront costs for the third runway are due to the complexity and expense of securing UK planning consents and the inefficiencies of pausing and restarting major infrastructure projects. As a result, the projected cost for the third runway has risen significantly, with London Heathrow Airport requesting an additional £320 million (approximately €368 million) from the Civil Aviation Authority in July 2025 to cover the planning costs. The total projected planning costs for the third runway have increased to approximately £820 million (around €960 million).

The total cost of expansion and modernization is now expected to reach £49 billion (approximately €56.5 billion), with approximately £21 billion (about €24.2 billion) allocated for the third runway. This high cost has led British Airways' parent company, IAG Group, to challenge the increase of passenger fees at Heathrow Airport, describing it as "excessive."

Heathrow Airport is seeking approval to recover costs through higher passenger fees, aiming to raise the rate to £33.26 (€38.33) per passenger by 2027. This would make Heathrow Airport the most expensive airport in the world, according to Virgin Atlantic, which has previously criticized the financial management and lack of value for money at the airport.

Despite being fully privately funded, Heathrow Airport faces the risk of losing airlines and passengers if its fees become too high. This is a concern for the airport, as it believes investing early is necessary to meet the government's timeline for a new runway within a decade.

The expansion of Heathrow Airport is expected to open up new routes and boost the UK's economy, but it remains to be seen whether the high costs and opposition will be overcome. The airport will need to balance the need for growth with the need to be competitive and provide value for money for airlines and passengers.