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Heathrow Cleared to Recover Expansion Costs Through Passenger Fees

Heathrow Airport has received formal approval from the Civil Aviation Authority to recoup up to £320 million in planning and design expenses related to its long-delayed third runway. The regulator’s decision authorizes the airport to pass these early-stage development costs directly to airlines through incremental increases in passenger charges.

Heathrow Cleared to Recover Expansion Costs Through Passenger Fees

The regulatory ruling confirms that the airport operator can collect these funds via a per-passenger levy, which is set to rise from 15 pence in 2028 to approximately 30 pence in the following years. This recovery window covers expenditures incurred through the end of 2024, with the CAA expected to launch a separate consultation later this year regarding costs accumulated from 2025 onward.

Tim Johnson, the CAA’s director for consumers and markets, described the move as a necessary compromise between keeping the expansion project on track and shielding the public from excessive financial burdens. The regulator maintains that only costs deemed efficient and justified will be permitted under this fee structure, ensuring that the financial weight of Europe’s busiest airport’s growth does not fall disproportionately on travelers.

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