Heathrow (2): £10 Billion Private Investment Plan
To improve service levels, boost reliability and unlock growth for Britain

Heathrow is the most punctual major airport in Europe this year and the best-connected airport in the world delivering strong value for its customers and the country. The five-year plan unveiled today is the next plank in its strategy to climb back up the international rankings and be an airport fit for the future.
Its plan will deliver on what its customers say matters most to them. It will enable us to better serve passengers, improve operational resilience and unlock growth for both airlines and UK businesses – with a boost to the UK supply chain in this Parliament. It is a 100% privately financed investment in the UK’s hub airport that will make Heathrow more sustainable and prepared for a digital future. It can be delivered affordably with stretching efficiency savings of over £800 million and an airport charge that remains lower than it was a decade ago in real terms.
Over the past 12 months, the company has been working closely with airline partners –including hosting over 120 hours of joint planning- and heard from more than 2 million passengers to understand what matters most, resulting in a customer-led investment plan which will span from 2027–2031.
This major infrastructure programme marks Heathrow’s most significant transformation in over a decade – including creating new space within existing terminals equivalent in size to 10 football pitches. From smoother journeys to new lounges, shops and restaurants, the changes will make Heathrow a more enjoyable, resilient and efficient hub for millions of passengers each year.
The aim? A delightful journey from check-in to take-off:
99% of bags travelling with passengers
80% of flights departing on-time
95% of passengers waiting less than five minutes at security
A step-change in service with more choice for passengers requiring additional support
The result: a travel experience where 95% of passengers rate their journey as “good” or “excellent”.
The upgrade is designed to do more than improve the airport – it’s set to boost the country. Once complete, Heathrow will be able to serve 10 million more passengers a year, a 12% increase in capacity that supports its airlines’ growth plans. Cargo handling will also get a significant lift, with plans to increase freight capacity by 20%, giving UK businesses a more efficient gateway to international markets.
Behind the scenes, the company is planning the redevelopment of the Central Terminal Area and will seek planning permission to demolish the old Terminal 1, extend Terminal 2 and build a new southern road tunnel to improve access.
The project will be delivered by a UK-based supply chain 60% of which is based outside London and the South East, supporting skilled jobs and local businesses around the country in this Parliament. Crucially, it is funded entirely through private investment, not taxpayer money, and is designed to be cost-effective. A £2bn equity contribution from Heathrow shareholders will mean that the investment plan can be delivered affordably. Heathrow’s airport charge has dropped 23% over the past decade and, even with this investment, the new £33.26 charge remains below 2014 levels in real terms.
The company is also committed to driving efficiency:
Stretching operating cost efficiencies of 6%
£500 million efficiency savings on the capital spend
The future of Heathrow must be sustainable. The investment includes steps toward reducing the airport’s environmental footprint:
Removing 3,000,000 tonnes of carbon – equivalent to 15% of 2024 footprint
Noise insulation for 6,500 homes and 15 schools
A sustainable and secure energy supply that maintains 100% renewable electricity
10% cut in waste and 20% rise in recycling
And Heathrow is keeping its promise to give back – aiming to reach 1 million people locally with programmes in skills, education and community support by 2030.
The CAA (Civil Aviation Authority) will now review and evaluate this plan. The company will support this process alongside its airline partners and look forward to getting started with delivering improvements to make an airport fit for the future.
See for details AVIONEWS.
AVIONEWS - World Aeronautical Press Agency