Heathrow Tries Again For 3rd Runway After Record 39.8 Million Passengers In H1

Summary

  • The British Airways CEO is concerned about high airport fees at London Heathrow (LHR).
  • Discussions continue on building a vital third runway at Heathrow.
  • LHR sees record-breaking passenger numbers for the first six months of 2024, frustrating airlines.

At the Farnborough International Airshow today, British Airways CEO Sean Doyle reiterated concerns related to airport charges at London Heathrow Airport (LHR). Doyle noted that the airport’s fees remain too high and risk making the facility and its airline operators uncompetitive in the face of competition from other European hubs.

The comments came during day 3 at the Farnborough Airshow and follow recent decisions from authorities to reduce airport landing fees at Heathrow. They also came in the context of continued discussions on the possibility of the all-important third runway at LHR.

The third runway and record-breaking passenger numbers

Quoted by Aviation Week, Doyle spoke about the possibility of a third runway and its impact on airline operations.

“Our stance [on a third runway] has always been pretty clear, which is that we do believe in expansion, but it’s got to pass a number of tests—one is sustainability and two is affordability.”

British_Airways-British_Airways_Airbus_A319_taxis_at_London_Heathrow_Airport-ref180858 (2)

Photo: British Airways

Heathrow has had government permission to build its third runway since 2018, but issues including opposition from environmental groups and local authorities for instance have prolonged the process.

Today, The Guardian is reporting that LHR plans to submit a new plan to the recently elected Labour government as it predicts growing passenger numbers in the post-COVID environment. CEO Thomas Woldbye said:

“We will have a blueprint that includes a third runway, and a blueprint that doesn’t, because at the end of the day, there are still many external dependencies for a third runway. I think London needs the additional capacity a third runway would provide.”

Heathrow Airport revealed on Wednesday that it had welcomed a record 39.8 million passengers during the first six months of 2024. This achievement, which Woldbye says strained the airport’s facilities to the maximum, is a testament to continued growth at what is the UK’s largest air hub.

June 30th was the facility’s busiest day with 268,000 passengers traveling on more than 1300 flights. Woldbye said:

“Serving record-breaking passenger numbers while continuing to deliver excellent customer service is no easy feat and is testament to the dedication of my hardworking colleagues. In addition to the nearly 40 million passengers that flew through Heathrow during the first 6 months, so did 765,000 tonnes of cargo, supporting world leading British industries to access global export markets.

We are working hard to deliver economic benefits for all of the UK, but this needs to be supported by joined up policy making that prioritises global competitiveness and sustainable growth. We are encouraged by the new Government’s recognition of Heathrow’s role in powering growth across the country, and look forward to working with Ministers to ensure we are firing on all cylinders and retain our global standing.”

LHR is not affordable

LHR is a notoriously expensive airport, known for its role as the subject of some of the most expensive slot transactions in the world. For example, Oman Air purchased an invaluable early morning slot from Kenya Airways in 2016 for a record-breaking $75 million.

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But slot trade deals aside, operating at LHR is expensive in itself. Doyle said:

“Right now, we operate out of an airport which is charging maybe two and a half times what a lot of other airports are around Europe. If expansion leads to a big escalation in the cost per passenger, I think we will be in a tough situation. We will have new infrastructure—a lot more capacity—but a very expensive proposition. We have to avoid falling into that particular trap.”

View of airplanes from British Airways (BA) at the T5 Terminal 5 at London Heathrow Airport (LHR

Photo: EQRoy | Shutterstock

He also noted that with or without the third runway, changes could and should be made to Heathrow to improve its appeal.

“I think we could do a lot more to make the airport better and more efficient than today, even if we don’t expand. I think we’ve been very consistent on a lot of those positions.”

Long-standing debates

This isn’t the first time British Airways has mentioned its problems with Heathrow’s airport charges. In fact, another major player at the airport, Virgin Atlantic, has also previously called out high airport charges.

Per the Financial Times, on July 11, Heathrow was ordered by the Civil Aviation Authority to cut its landing fees, capping them at £23.73 ($30.67) per passenger in 2025, and £23.71 ($30.65) in 2026. This equates to a roughly 6% drop compared to the initial plan for the period.

G-VLUX Virgin Atlantic Airbus A350-1041 (3)

Photo: Vincenzo Pace | Simple Flying

At one point, LHR had wanted to push fees to about £40 ($51.70) per passenger, given flattened profits during the pandemic.


  • British Airways Tile

    British Airways

    IATA/ICAO Code:
    BA/BAW

    Airline Type:
    Full Service Carrier

    Hub(s):
    London Heathrow Airport, London Gatwick Airport

    Year Founded:
    1974

    Alliance:
    oneworld

    Airline Group:
    IAG

    CEO:
    Sean Doyle

    Country:
    United Kingdom

    Loyalty Program:
    British Airways Executive Club

    Region:
    Europe

  • heathrow_17581988126223

    London Heathrow Airport

    IATA/ICAO Code:
    LHR-EGLL

    Country:
    United Kingdom

    CEO:
    John Holland-Kaye

    Passenger Count :
    19,392,178 (2021)

    Runways :
    09L/27R – 3,902m (12,802ft) |
    09R/27L – 3,660m (12,008ft)

    Terminals:
    Terminal 2 |
    Terminal 3 |
    Terminal 4 |
    Terminal 5

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