The UK’s Heathrow Airport has announced a £10bn ($13.5bn) investment plan aimed at enhancing the travel experience for passengers over the next five years.
The strategy focuses on improving service delivery, operational resilience, and growth opportunities for airlines and UK businesses.
The privately financed plan aims to make Heathrow more sustainable and technologically advanced while achieving efficiency savings exceeding £800m.
Notably, airport charges will remain lower than a decade ago when adjusted for inflation, according to the airport.
Heathrow has engaged extensively with airline partners and gathered feedback from more than two million passengers to shape this customer-centric investment plan, set for implementation between 2027 and 2031.
Enhancements will include new terminal space for new lounges, shops, and dining options, all aimed at making Heathrow a more enjoyable hub for millions of travellers annually.
Key objectives of the upgrade include achieving a 99% success rate for baggage travelling with passengers, ensuring 80% of flights depart on time, and reducing security wait times to under five minutes for 95% of passengers.
The ultimate goal is for 95% of travellers to rate their journey as “good” or “excellent”.
The investment is also expected to benefit the wider UK economy, accommodating an additional ten million passengers each year—a 12% increase in capacity.
Furthermore, cargo handling capabilities will see a projected 20% increase in freight capacity, facilitating better access for UK businesses to global markets.
Heathrow CEO Thomas Woldbye said: “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 [UK] Parliament. We are ready to deliver the more efficient, sustainable Heathrow that will keep Britain connected to the world.”
Plans for the redevelopment of the Central Terminal Area include seeking planning permission to demolish the old Terminal 1, extend Terminal 2, and construct a new southern road tunnel to improve airport access.
The project will be executed by a UK-based supply chain, with 60% of the work allocated to regions outside London and the South East, supporting local businesses and skilled jobs.
Additionally, the investment is aimed at reducing the airport’s environmental impact by removing three million tonnes of carbon, 15% of its projected footprint for 2024.
The airport plans to maintain a 100% renewable electricity supply, achieve a 10% reduction in waste, and increase recycling by 20%. Additionally, it aims to provide noise insulation for 6,500 homes and 15 schools.
The Civil Aviation Authority (CAA) will assess the proposed investment plan, with Heathrow and its airline partners ready to support this evaluation process as they work towards enhancing the airport's offerings for the future.
In January, Heathrow Airport reported a record-breaking December 2024, with over seven million travellers, bringing the annual total to 83.9 million - three million more than the pre-pandemic record set in 2019.
