London Heathrow Airport’s (LHR) planning cost for the third runway is currently projected to exceed £1 billion (approximately €1.15 billion). The airport seeks to raise passenger charges to recoup the expenses incurred this year and next for its planning permission submission.
In July 2025, Heathrow Airport executives requested an additional £320 million (approximately €368 million) from the Civil Aviation Authority (CAA) to cover expansion-related expenses. This marks a significant increase, bringing the total projected planning costs for the third runway to approximately £820 million (around €960 million), up from the £500 million (approximately €576 million) in preparation costs forecasted in 2019.
Heathrow is looking for approval to recover the costs through higher passenger fees. The airport currently levies an average charge of £28.46 (€32.80) per passenger but is pressing to raise the rate to £33.26 (€38.33) by 2027.
Expanding Heathrow by the numbers ➡️
— HeathrowNews (@HeathrowNews) September 3, 2025
📈 £21bn investment in a third runway, with additional investment totalling £49bn to deliver our plans
💯100% privately financed
🛫Up to 276,000 additional flights a year unlocked
🗺️30 new daily routes by 2040
⬆️Increase the UK’s GDP… pic.twitter.com/u7zyNUlCGf
Heathrow also announced that the total cost of expanding and modernising the airport is now expected to reach £49 billion (approximately €56.5 billion). Of that total, roughly £21 billion (about €24.2 billion) would be allocated for the third runway. The expansion project faces opposition from a wide range of groups, including local residents, environmental activists, and airlines. Airlines have previously criticised Heathrow’s financial management and lack of value for money.
The airport has previously reported that the expansion is set to increase its capacity by at least 30 new routes and nearly 80 per cent more passengers.
New routes, new reach 📈 Expanding Heathrow could support over 30 new daily airline routes, including around 10 new long-haul destinations – giving passengers more choice and boosting trade, tourism, and inward investment across the UK.
— HeathrowNews (@HeathrowNews) August 28, 2025
Find out more about our proposed plan to… pic.twitter.com/kh5Zpcl1pQ
In a letter to the CAA, Mike Kind, Heathrow’s director of regulations and economics, stated that the goal of having a third operational runway by 2035 is a government objective, not the airport’s.
“To unlock the benefits of expansion swiftly for consumers and the country, it’s right to invest early to meet the Government’s timeline for a new runway within a decade,” a spokesperson for Heathrow said. “These upfront costs reflect the complexity and expense of securing UK planning consents, and the inefficiencies of pausing and restarting major infrastructure projects.”
We’re working hard to ensure the benefits of expanding Heathrow reach not only every region and nation, but also our neighbours here in the local community. So what does this mean for them?
— HeathrowNews (@HeathrowNews) August 26, 2025
✅Tens of thousands of new local jobs
✅More contracts for local businesses and SMEs… pic.twitter.com/LJagzyaaKV
On the other hand, airlines have challenged the increase of passenger fees, with British Airways’ parent company, IAG Group, describing the action as “excessive.” Virgin Atlantic has also criticised Heathrow, labelling it “already the most expensive airport in the world.” Although the airport’s expansion project is fully privately funded and receives no taxpayer money, Heathrow faces the risk of losing airlines and passengers if its fees become too high.
