Heathrow Airport will be permitted to recover up to £320 million in early expansion costs through higher airline charges passed on to passengers, under a decision by Britain's Civil Aviation Authority. The funds cover planning and design work for a proposed third runway undertaken during 2025 and 2026.
The cost recovery mechanism is expected to add roughly 15p to the maximum per-passenger airport charge in 2028, rising to 30p in subsequent years and remaining in place for about two decades. Arora Group's Heathrow West competing proposal will separately recoup £4.1 million in costs spent through late November 2025.
The CAA said safeguards would be introduced to shield consumers from unjustified expenditure. However, British Airways warned that early cost recovery could render the expansion unaffordable for travellers, signalling ongoing industry tension over how the long-planned project is financed.