Heathrow will be allowed to raise passenger charges by up to 56% under plans announced by the aviation regulator.
The Civil Aviation Authority (CAA) is consulting on increasing the cap on the west London airport’s price per passenger from £22 last year to between £24.50 and £34.40.
It is proposing that the exact figure will depend on factors such as passenger demand and commercial revenue, with prices higher if Heathrow continues to struggle in those areas.
The range is planned to come in effect from summer 2022, with an interim cap of £30 being introduced at the beginning of the year.
The charges are ultimately paid by passengers as airlines add the cost to the price of tickets.
Heathrow had called for the cap to range from £32-£43 for the five-year period being consulted on.
The airport said in July that its losses from the Covid-19 pandemic had hit £2.9 billion.
Passenger numbers in September were just 38% of pre-pandemic levels.
In response to the Civil Aviation Authority’s proposals on Heathrow passenger charges, an airport spokesman said: “Our aim is to reach a settlement that enables us to give passengers a great service while operating a safe, resilient and competitive hub airport for Britain.
“That Heathrow is ranked by passengers as one of the best airports in the world is testament to the power of private investment over the past decade, and to enable this to continue we believe the settlement should safeguard a fair return for investors.
“We provide great value for money, which is why airlines generate premium profit margins on their services from our world-class facilities.
“While it is right the CAA protect consumers against excessive profits and waste, the settlement is not designed to shield airlines from legitimate cost increases or the impacts of fewer people travelling.
“We look forward to discussing the CAA’s proposals in detail with the regulator and our airline partners as we work towards a new settlement.”
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