Heathrow Airport to Invest Billions in Next Five Years

London’s Heathrow Airport on Friday announced that it was planning to invest $13.54 billion over the next five years to upgrade its terminals and services, following a slide in global airport rankings.

The plan 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 $1.08 billion and an airport charge that remains lower than it was a decade ago in real terms. 

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. 

Heathrow Airport has fallen to 22^nd place this year on Skytrax’s list of the world’s top 100 airports, down from 21^st place in 2024.

The airport has submitted an investment plan to the UK Civil Aviation Authority (CAA) for review and the plan includes redesigning passenger terminals, improving flight punctuality through artificial intelligence tools, and reducing the airport’s carbon footprint.

“The CAA will now review and evaluate our plan. We will support this process alongside our airline partners and look forward to getting started with delivering improvements to make Heathrow an extraordinary airport, fit for the future,” the airport officials said. 

According to them, the investment will increase the airport’s passenger count by 10 million passengers annually, a 12% increase in capacity. The plan was unveiled after major airlines such as British Airways and Virgin Atlantic have raised concerns about airport congestion and rising infrastructure usage charges.

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 is the next plank in the airport’s strategy to climb back up the international rankings and be an extraordinary airport, fit for the future. 

Serve Passengers Better

The plan will deliver on what the customers say matters most to them. It will enable the airport to better serve the passengers, improve operational resilience and unlock growth for both airlines and UK businesses – with a boost to the UK supply chain in this Parliament.

Heathrow airport 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 to 2031, over the past 12 months. 

Private Investment

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. Crucially, it is funded entirely through private investment, not taxpayer money, and is designed to be cost-effective.

A $2.71 billion 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 $45.04 charge remains below 2014 levels in real terms. 

Reducing Carbon Emissions

To make the future of Heathrow must be sustainable, the investment includes steps toward reducing the airport’s environmental footprint by 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 and 10% cut in waste and 20% rise in recycling.

Making Good Progress

Heathrow CEO Thomas Woldbye said that they were making good progress on their strategy to become an extraordinary airport, having become Europe’s most punctual major airport so far this year.

“But the airport’s customers want to improve the airport’s international rankings further, as do we. To compete with global hubs, we must invest,” he said.,

The five-year plan boosts operational resilience, delivers the better service passengers expect and unlocks the growth capacity airlines want with stretching efficiency targets and a like-for-like lower airport charge than a decade ago.

With Heathrow’s UK-based supply chain, this private investment will create jobs and drive national growth. We are ready to deliver the more efficient, sustainable Heathrow that will keep Britain connected to the world, he added.