- New investment will improve service levels, boost reliability and unlock growth for Britain
- For the first time in a decade, Heathrow will also create new terminal space for new lounges, shops and restaurants within existing terminals
- The investment will create skilled jobs and drive growth across Heathrow’s UK-based supply chain in this Parliament
Heathrow is the most punctual major airport in Europe this year and the best-connected airport in the world delivering strong value for our customers and the country. The five-year plan we’re unveiling today is the next plank in our strategy to climb back up the international rankings and be an extraordinary airport, fit for the future.
Our plan will deliver on what our customers say matters most to them. It will enable us to better serve our passengers, improve operational resilience and unlock growth for both airlines and UK businesses – with a boost to the UK supply chain in this Parliament. It is 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, 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.
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 10 football pitches. From smoother journeys to new lounges, shops and restaurants, the changes will make Heathrow a more enjoyable, resilient and efficient hub for millions of passengers each year.
The aim? A delightful journey from check-in to take-off:
- 99% of bags travelling with passengers
- 80% of flights departing on-time
- 95% of passengers waiting less than five minutes at security
- A step-change in service with more choice for passengers requiring additional support
The result: a travel experience where 95% of passengers rate their journey as “good” or “excellent”.
Boosting capacity, trade and Britain’s global reach
The upgrade is designed to do more than improve the airport – it’s set to boost the country. Once complete, Heathrow will be able 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.
Built in Britain, backed by Britain
The project will be delivered by a UK-based supply chain 60% of which is based outside London and the South East, supporting skilled jobs and local businesses around the country in this Parliament. Crucially, it is funded entirely through private investment, not taxpayer money, and is designed to be cost-effective. A £2bn equity contribution from Heathrow shareholders will mean that the investment plan can be delivered affordably. Heathrow’s airport charge has dropped 23% over the past decade and, even with this investment, the new £33.26 charge remains below 2014 levels in real terms.
We are also committed to driving efficiency:
- Stretching operating cost efficiencies of 6%
- £500 million efficiency savings on the capital spend
A more sustainable Heathrow
The future of Heathrow must be sustainable. The investment includes steps toward reducing the airport’s environmental footprint:
- Removing 3,000,000 tonnes of carbon – equivalent to 15% of 2024 footprint
- Noise insulation for 6,500 homes and 15 schools
- A sustainable and secure energy supply that maintains 100% renewable electricity
- 10% cut in waste and 20% rise in recycling
And Heathrow is keeping its promise to give back – aiming to reach 1 million people locally with programmes in skills, education and community support by 2030.
Commenting on the investment plan, 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.”
Next Steps
The CAA will now review and evaluate our plan. We will support this process alongside our airline partners and look forward to getting started with delivering improvements to make Heathrow an extraordinary airport, fit for the future.
