Today, Heathrow has submitted its 2027-2031 business plan to the CAA, which outlines our £10bn private investment plans to improve service levels, boost reliability and unlock growth for Britain during our next regulatory period.
Please find the plan here and the press release here.
This major infrastructure programme marks Heathrow’s most significant transformation in over a decade, which, once complete, will enable us to serve 10 million more passengers a year, a 12% increase in capacity that supports our airlines’ growth plans. Cargo handling will also get a significant lift, with plans to increase freight capacity by 20%, giving UK businesses a more efficient gateway to international markets.
Behind the scenes, we are planning the redevelopment of the Central Terminal Area and will seek planning permission to demolish the old Terminal 1, extend Terminal 2 and build a new southern road tunnel to improve access.
The private investment will create skilled jobs and growth across Heathrow’s UK-based supply chain, of which 60% is based outside of London and the South East.
We want to deliver for our customers and so to design our H8 plan, we have been working closely with airline partners – including hosting over 120 hours of joint planning – and heard from more than 2 million passengers to understand what matters most, resulting in a customer-led investment plan which will span from 2027 – 2031.
What will our investment plan deliver?
Value for money
- Ambitious targets on efficiency and a broader passenger base will keep airport charge increase at an average charge of £33.26. Heathrow’s airport charge has dropped 23% over the past decade and, even with this investment, the new charge remains below 2014 levels in real terms.
- A £2bn equity contribution from Heathrow shareholders will mean that the investment plan can be delivered affordably with a strong investment grade credit rating
- We are also committed to driving efficiency and will deliver operating cost efficiencies of 6% and £500 million efficiency savings on capital spend
More reliable journeys
- Baggage – more than 99% of bags flying on time
- Punctuality – more than 80% of flights on time
- Security – 95% waiting less than 5 minutes, 99% less than 10 minutes
- Safety – reducing passenger injuries by 25%, and colleagues by 20%
More enjoyable experience
- Passenger experience – 95% rating their journey ‘good’ or ‘excellent’
- Passengers Requiring Support – More choice and better service for passengers who require assistance
- Terminal space – 70,000m2 new or refurbished retail, F&B and lounge space
Growth ahead of expansion
- Growth – capacity for another 10 million passengers a year
- Trade – kickstart a 20% increase in cargo capacity benefiting exports across the UK
More sustainable operations
- Removing 3,000,000 tonnes of carbon – equivalent to 15% of 2024 footprint
- Quieter neighbour – noise insulation for at least 6,500 homes and 15 schools
- Reducing waste – 10% cut in waste and 20% increase in recycling
- Energy supply – a sustainable and secure energy supply that maintains 100% renewable electricity
- Giving back – complete our goal of giving back to 1m people by 2030
The CAA will now rigorously review and refine our plan in consultation with the airlines. We will support this process and look forward to getting started with delivering our plan to make Heathrow an extraordinary airport, fit for the future.
