UK. Heathrow Airport has announced the largest private sector capital investment in the UK’s transport network, pledging £2.3 billion over the next two years to upgrade the largest London gateway.
The planned acceleration of funding will see £1.05 billion spent on the airport’s infrastructure in 2025 and an additional £1.29 billion in 2026. The combined total is a rise of £244 million on previously forecasted investments, which will be used to enhance capabilities across all terminals, including baggage delivery and projects to support punctual departures and arrivals.
“The investment programme will improve service, resilience, passenger experience and sustainability for all passengers, said a Heathrow statement.
The airport company said the investments “will drive economic growth across the UK while allowing Heathrow – the world’s best-connected airport – to continue delivering for passengers and airlines”.
It will also create contract possibilities for businesses and SMEs nationwide, both local to the airport and across the country, added Heathrow.
Heathrow CEO Thomas Woldbye said: “Heathrow is the UK’s gateway to the world, and ultimately, the country’s gateway to growth. Today’s announcement confirms that we will continue to invest more than £1 billion of private sector cash each year into the airport to deliver facilities our airlines and passengers want, while boosting the UK economy and creating opportunities for businesses up and down the country.”
This announcement comes as Heathrow’s Investment Impact Report outlines how Heathrow has invested £1.1 billion in the airport in 2024, including £191 million to upgrade security lanes.
In its December Investor Report, issued last week, Heathrow forecast 83.8 million passengers in 2024 (+5.8% versus FY23) and 84.2 million in 2025 (+0.5% versus FY24).
The airport company said its traffic outlook is based on “the strong demand from summer 2024 continuing alongside the flight schedule and slot use stabilising, although we remain cautious in the face of inflation and market confidence, the resilience of the global economy and the potential fall-out from geopolitical events”.
Revenue is anticipated to reach £3,568 million next year (+2% vs FY24), with non-aeronautical revenue expected to rise to £1,375 million (+7.7% vs FY24), driven by higher passenger volumes.
*Click here for our recent interview with Heathrow Retail Director Fraser Brown, in which he discusses the challenges of constrained space and productivity against the backdrop of rising passenger traffic through 2024.
