IAG has questioned Heathrow Airport’s proposed third-runway funding, warning that the UK Civil Aviation Authority’s approach could create a precedent for charging airlines and passengers before the project is fully approved. The British Airways parent’s concerns centre on the regulator’s decision to let Heathrow recover early expansion costs through airport charges, even though the runway has yet to secure planning consent and construction has not begun.
The current allowance covers up to £320 million of efficiently incurred spending linked to planning, design, environmental work, legal costs, surveys and consultation. IAG has also highlighted Heathrow’s indication that it may seek as much as £9 billion in financial commitments during 2026 for future spending before a Development Consent Order is granted. That level of exposure would shift part of the project risk from Heathrow and its shareholders to airlines using the airport.
The CAA’s decision is limited to early costs rather than runway construction, but it still has long-term pricing implications. Industry estimates in the report suggest the charge could add about 15p per passenger in 2028, rising to around 30p later, with recovery spread over 20 to 25 years.