Heathrow passengers face higher fares as airport can recover early expansion plan costs

📰 source: theguardian_business · 💼 business

the civil aviation authority (caa) has allowed heathrow airport limited to recover £320m spent on its proposal for a third runway since last year. the money will be recouped through higher airline charges over about 20-25 years, meaning higher fares for passengers.

the caa said the maximum airport charge per passenger will rise by about 15p in 2028, increasing to an estimated 30p in later years. british airways warned this creates a risk that expansion would be 'unaffordable for consumers'. a rival expansion plan led by surinder arora was also allowed to recover £4.1m in costs.

the caa says the costs are capped and subject to efficiency reviews. meanwhile, andy burnham has expressed concerns that the expansion traps investment in london. the government aims to get the third runway built by 2035.

why it matters: heathrow passengers face decades of fare increases to fund a third runway, raising travel costs for millions.

source: theguardian_business
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