Sky-high Heathrow slot prices due to fierce competition

Record Prices for Airport Slots at London Heathrow

In a dynamic and competitive market, the value of airport slots at London Heathrow (LHR) has been reaching unprecedented heights. IBA, an aviation market intelligence and consultancy company, has recently released new insights about this rising trend.

The highest publicly reported slot trade to date occurred in 2016, when Oman Air purchased a slot pair from Air France-KLM for a staggering $75 million. This significant transaction, which demonstrated the scale of valuations in the slot market, was facilitated by Norway's Norwegian Air Shuttle.

The intense competition and scarcity in the Heathrow slot market are underscored by the fact that very few slots are returned for reallocation. As a result, the supply of slots at Heathrow during Summer 2025, for instance, is approximately 90% of recorded demand.

Slot transactions at Heathrow often align with wider economic and strategic objectives, such as Oman's 25-year National Tourism Strategy. The dynamic of slot valuations has the potential to trigger pricing wars where strategic gains outweigh high investment costs.

William McClintock of IBA explains that the value of airport slots is influenced by regulatory environments, market conditions, and timing. Unprecedented demand at London Heathrow is one of the key factors driving these record prices. However, this analysis does not include unregistered demand, where airlines may choose not to apply due to the extremely low probability of securing a slot via the free allocation pool.

Slot transactions at Heathrow often make headlines due to the high amounts airlines are willing to pay for access. The value of airport slots is determined by how much an airline is willing to pay to gain a competitive advantage. This analysis by IBA is based on over 15 years of verified slot transactions at London Heathrow.

Historic Heathrow transactions illustrate the scale of valuations in the slot market. IBA's database provides a comprehensive view of this market, offering valuable insights for airlines, airports, and regulatory bodies. The rising value of airport slots at London Heathrow is a testament to the competitive nature of the aviation industry and the strategic importance of securing a coveted slot at one of the world's busiest airports.