Third runway will cost £15 per passenger, Heathrow boss claims
#Heathrow expansion #Third runway costs #Thomas Woldbye #Civil Aviation Authority #Heathrow Reimagined #Airport investment #Passenger charges #UK aviation policy
📌 Key Takeaways
- Heathrow CEO claims third runway will cost £15 per passenger over more than a decade
- The £49 billion investment plan has government support but faces opposition from airlines and environmental groups
- Competing calculations suggest costs could be as high as £60 per passenger
- Heathrow reinstated dividend payments after five years despite reporting lower profits
📖 Full Retelling
Heathrow chief executive Thomas Woldbye claimed on February 25, 2026, that the proposed third runway would cost passengers only £15 each over more than a decade, as Britain's busiest airport presented its final arguments for the controversial project ahead of a crucial regulatory decision. The Heathrow boss explained that the £15 per passenger figure represents the additional revenue needed to deliver the third runway, which he compared to the cost of taking the Elizabeth Line from central London to Heathrow. This claim comes as part of Heathrow's £49 billion investment plan spread over 20 years, which has been backed by Chancellor Rachel Reeves as part of the government's economic growth strategy. However, the project faces opposition from environmental groups and concerns from airlines about potential cost increases. The Heathrow Reimagined campaign, supported by British Airways and Virgin Atlantic, has disputed the airport's calculations, suggesting the true cost per passenger would be closer to £60—adding £240 to a family holiday. These competing figures come as Heathrow reported a one-third fall in annual pre-tax profits to £575 million, though profits remained flat when accounting for non-ash property valuation changes. Despite this, the airport reinstated dividend payments of £550 million to shareholders for the first time in five years, citing solid cash flow and operational performance. The future of the third runway hinges on a forthcoming ruling by the Civil Aviation Authority, which is considering changes to Heathrow's regulated business model that determines how costs are passed on to airlines. The regulator is expected to provide details on the future model in the coming weeks before making a final decision later in the year. This decision is critical as Heathrow's owners, including private equity fund Ardian and sovereign wealth funds from Qatar, Saudi Arabia and Singapore, require clarity on the regulatory framework before committing to the £49 billion investment.
🏷️ Themes
Aviation infrastructure, Economic development, Regulatory policy
📚 Related People & Topics
Civil aviation authority
Government agency charged with the regulation of aviation
A civil aviation authority (CAA) is a national or supranational statutory body that oversees the regulation of civil aviation, including the maintenance of an aircraft register.
Expansion of Heathrow Airport
Proposals for expansion of Heathrow Airport, London
The expansion of Heathrow Airport is a series of proposals to add to the runways at London's busiest airport beyond its two long runways which are intensively used to serve four terminals and a large cargo operation. The plans are those presented by Heathrow Airport Holdings and an independent propo...
Entity Intersection Graph
No entity connections available yet for this article.
Original Source
Third runway will cost £15 per passenger, Heathrow boss claims on x (opens in a new window) Third runway will cost £15 per passenger, Heathrow boss claims on facebook (opens in a new window) Third runway will cost £15 per passenger, Heathrow boss claims on linkedin (opens in a new window) Third runway will cost £15 per passenger, Heathrow boss claims on whatsapp (opens in a new window) Save Third runway will cost £15 per passenger, Heathrow boss claims on x (opens in a new window) Third runway will cost £15 per passenger, Heathrow boss claims on facebook (opens in a new window) Third runway will cost £15 per passenger, Heathrow boss claims on linkedin (opens in a new window) Third runway will cost £15 per passenger, Heathrow boss claims on whatsapp (opens in a new window) Save Peter Campbell in London Published February 25 2026 Jump to comments section Print this page Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. The boss of Heathrow airport has said a third runway would cost only the equivalent of £15 per passenger over the course of more than a decade, as Britain’s sole hub airport laid out its final arguments for the controversial project ahead of a crucial ruling by the regulator. “The submission we gave the government last September indicates that what we need in additional revenue to deliver the third runway is £15 per passenger,” Heathrow chief executive Thomas Woldbye told the FT. “That’s what it costs you to take the Elizabeth Line from central London to Heathrow. For that amount of money, we can deliver an almost new airport.” Heathrow’s plan to build a new runway and terminal complex — as part of a longer-term £49bn investment plan spread over 20 years — has been backed by chancellor Rachel Reeves as part of the government’s push to grow the economy. But it has been met with warnings from airlines about its potential impact on their costs, as well as criticism from environmenta...
Read full article at source