UK. London Heathrow Airport today announced a £10 billion (US$13.5 billion), five-year investment plan from 2027 to 2031. The company described it as “the next plank in our strategy to climb back up the international rankings and be an extraordinary airport, fit for the future”.
Once complete, Heathrow will be able to serve 10 million more passengers a year, a +12% increase in capacity compared to today.
For the first time in a decade, Heathrow will create space for additional lounges, shops and restaurants within existing terminals.
Heathrow is 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 airport company noted that this a “100% privately financed investment in the UK’s hub airport that will make Heathrow more sustainable and prepared for a digital future. It can be delivered affordably with stretching efficiency savings of over £800 million and an airport charge that remains lower than it was a decade ago in real terms”.
Over the past 12 months, Heathrow has been working closely with airline partners and heard from more than two million passengers, resulting in a “customer-led investment plan” that runs from 2027.
A statement added: “This major infrastructure programme marks Heathrow’s most significant transformation in over a decade – including creating new space within existing terminals equivalent in size to ten football pitches.”
With targets set for on-time flights, security waiting times and a “step change” in services for travellers who need additional support, Heathrow said it aimed to deliver “a travel experience where 95% of passengers rate their journey as good or excellent”.
Heathrow CEO Thomas Woldbye said: “We’re making good progress on our strategy to become an extraordinary airport – having become Europe’s most punctual major airport so far this year. But our customers want us to improve our international rankings further, as do we.
“To compete with global hubs, we must invest. Our five-year plan boosts operational resilience, delivers the better service passengers expect and unlocks the growth capacity airlines want with stretching efficiency targets and a like-for-like lower airport charge than a decade ago.
“With Heathrow’s UK-based supply chain, this private investment will create jobs and drive national growth during this Parliament. We are ready to deliver the more efficient, sustainable Heathrow that will keep Britain connected to the world.”
The proposals will be reviewed by the UK Civil Aviation Authority.
Heathrow also reported June passenger traffic performance today, with volumes slipping by -1% year-on-year to 7.3 million.
The airport company cited “global events” as a factor, with traffic to and from the Middle East down -5.9%, North America -3.3% and Latin America -3.8%. ✈
