View of Terminals 5B and 5C at Heathrow Airport. Credit: Mike McBey/Flickr (Creative Commons).

The UK Civil Aviation Authority (CAA) has confirmed the final level of price cap on what Heathrow Airport can charge its airline customers.

The new cap, which will be affective until the end of 2026, will see the average maximum price per passenger drop 20% to £25.43 in 2024 from £31.57 in 2023.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The regulator also said that the price per passenger will further drop and remain broadly flat until the end of 2026.

The new rate will take the average charge over the five years to £27.49 compared to £28.39 for final proposals.

UK CAA chief executive Richard Moriarty said: “We have carefully considered the sharply differing views from Heathrow Airport Limited and the airlines about the future level of charges. Understandably, their respective shareholder interests lead the airport to argue for higher charges and the airlines to argue for lower charges.

“Our job is to reach an independent decision from these conflicting commercial interests and focus on what is in the best interests for the travelling public that will use Heathrow in the years to come. In doing so we have taken all the points made by Heathrow Airport Limited and airlines into account, along with extensive consultation and our own detailed analysis.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The authority decided to reduce charges from 2024 as it expects passenger volumes to return to pre-pandemic levels.

The decision will benefit passengers, while enabling Heathrow Airport to continue investing in the airport.

Richard Moriarty added: “We are confident our final decision represents a good deal for consumers using Heathrow, while having regard for the airport’s need to efficiently finance its operations and be able to invest in improving services for the future.”

Last month, the Heathrow Airport posted an adjusted pre-tax loss of £684m in 2022, a drop from the £1.27bn loss a year ago due to Covid-19-induced travel restrictions.