Heathrow is the UK's front door to the world – and a vital engine of national growth. Our new five-year investment plan sets out how we will modernise the airport, improve the passenger experience, cut carbon and grow the economy - all without asking taxpayers for a penny.
Today, we submitted our 2027-2031 business plan to the Civil Aviation Authority. At its heart is a £10 billion privately funded investment package to make Heathrow more efficient, more sustainable and better prepared for the future. We're focusing squarely on delivering value for passengers, airlines and the economy.
This moment matters. Global aviation is evolving fast, and while the world doesn't stand still, infrastructure investment in the UK often does. That's a risk we can't afford. Over the past year, we've spoken to more than two million passengers, reviewed over 400 piece of research and spent 120 hours in discussion with our airline partners. Their message is clear: improve the experience, expand capacity, modernise sustainably – and keep it affordable.
Our plan delivers exactly that. For an average airport charge of £33.26 - lower in real terms than a decade ago – we'll unlock space for 10 million more passengers, grow cargo capacity by 20% and upgrade nearly every part of the passenger journey. That means faster security, smoother baggage handling, more comfortable terminals, new lounges, restaurants and shops - all while delivering a better service for the growing number of passengers who need assistance.
Crucially, this isn't growth at any cost. We'll cut carbon emissions by 3 million tonnes (15% of our 2024 footprint), power the airport with a secure and renewable energy supply and insulate 6,500 homes and 15 schools from aircraft noise. A £2 billion equity contribution from our shareholders will help keep the plan financial robust and cost-effective.
Heathrow isn't a cheap airport to run – we're in a dense, highly regulated environment with aging infrastructure. But our value speaks for itself. Airlines see Heathrow as a critical hub for their future growth, and the returns they generate here reflect that. This isn't about ambition or its own sake - it's about staying competitive in a global race we can't afford and don't have to lose.
The investments we're proposing will be backed by clear accountability. We're committing to stretch targets: 6% savings on operating costs, £500 million in capital efficiencies and service improvements that will make every journey better. And we have a track record of delivering under pressure – we've done it before by building Terminals 2 and 5 which have consistently been ranked by passengers as amongst the best in the world, both delivered on-time and on-budget. We will do it again.
Some might question the scale of investment, but Heathrow is not a greenfield site. We're upgrading one of the world's most complex operational environments - home to over half a million interdependent assets, in one of the busiest airspaces on earth. With the smallest physical footprint of any global hub, there's zero room for error. That's why this plan is so carefully designed – and why it's so essential.
Beyond Heathrow, the benefits are nationwide. 60% of our supply chain is based outside of London and the South East. Moving ahead with this plan will support jobs and boost productivity across the UK. Heathrow already handles 40% of Britain's non-EU exports by value – growing cargo capacity by 20% is an economic necessity, not a luxury when the country needs growth.
The UK needs an airport that matches its ambition. Right now, Heathrow is not where we'd want it to be in the global rankings. We've shown we can improve, becoming Europe's most punctual major airport this year. But to move up, we must invest. Other countries have modernised their hubs, the UK hasn't – the risk of doing nothing is decline.
This plan is shaped by data, grounded in what customers actually want and built to deliver more for less. It meets net zero goals, strengthens the economy and gives Britain an airport it can be proud of.
The real question isn't whether this private investment is justified, it's whether the UK wants its Gateway to Growth to fall further behind when there is a viable solution on the table.
Thomas Woldbye is CEO of Heathrow
