Airline passengers to enjoy cheaper fares after landing fees at Heathrow reduced

Passengers will pay less for flights from Heathrow after regulators ordered the airport to cut landing fees.

The Civil Aviation Authority (CAA) said charges for airlines will fall to £23.73 per passenger in 2025 and £23.71 in 2026.

This compares with previously proposed limits of £25.24 and £25.28 respectively.

The decision follows a ruling by the Competition and Markets Authority (CMA) in October, which intervened in the dispute between Heathrow and airlines including British Airways and Virgin Atlantic.

The UK’s largest airport had argued it should be allowed to charge up to £40 per passenger to recoup its losses caused by the pandemic.

But airlines said the airport was trying to rip off customers with excessive prices and pushed for cuts.

Costs are usually passed on to passengers through their tickets, but John Grant, an expert at aviation consultancy OAG, says savings to passengers will be limited.

“Airport taxes and charges are a very small part of an airline’s operating costs,” he said, adding that fares had already risen.

The landing fee news came as Heathrow reported record passenger numbers of 81.9 million in the year to the end of June, up 13 per cent on the previous year.

Last month alone, more than 7 million passengers flew, with the busiest day being June 30, when 268,000 passengers passed through its terminals.

The figures come as the group is undergoing a shareholding restructuring. Last month, private equity group Ardian and Saudi Arabia’s sovereign wealth fund agreed to buy a 38 percent stake for £3.3 billion.

The Public Investment Fund (PIF), controlled by Saudi Crown Prince Mohammed bin Salman, is estimated to have more than £550bn in assets.

Campaigners have attacked the PIF’s crackdown on Heathrow because of the country’s dubious human rights record.

The government has the power to block deals on national security grounds, but it is unclear whether it will intervene as PIF increases its stake. The Qatar Investment Authority is also a major shareholder, with a 20% stake.