The UK Civil Aviation Authority (CAA) has proposed only a modest increase in Heathrow passenger charges for the next regulatory period, rejecting the airport owner’s attempt to secure a larger rise to fund expansion.
Under its initial proposals for the H8 period from 2027 to 2031, the regulator set a price cap range of £27.20 to £30.50 per passenger, implying an average charge of £28.80, up from £28.40 in the previous control period. The CAA said the midpoint is £5.40 lower than Heathrow Airport Limited’s forecast and £5.80 higher than the level sought by airlines.
The regulator said the framework is intended to balance affordability with investment, allowing Heathrow to recover efficient costs while incentivising improvements in service quality and environmental performance. The airport is expected to invest billions in resilience and passenger services, including baggage handling and security.
Selina Chadha, group director of consumers and markets at the CAA, said the proposals “strike the right balance between keeping passenger prices fair, while enabling the airport to make the investment needed to improve services for the future”.
The Financial Times reported that the regulator had rejected Heathrow’s request to raise charges to £33.26 per passenger to fund a £10bn upgrade programme, instead proposing a reduced investment plan of £5.8bn. The revised plan includes spending on the airport’s electrical infrastructure following a power outage last year that led to more than 1,300 flight cancellations.
Airlines have continued to oppose higher charges, arguing they are passed on to passengers through ticket prices. City AM reported that carriers had called for a reduction of more than £5 per passenger and warned that future expansion costs, including a third runway, could push total charges above £50.
The proposals are subject to consultation, with the CAA expected to publish final recommendations in November 2026 ahead of a final decision in April 2027.