Airport fee rise sends fares up
AIR fares are set to rise after regulators said that Heathrow can raise its passenger charges, as both the hub and airlines look to recover Covid-19 losses.
The Civil Aviation Authority (CAA) says it will increase the maximum the London airport can charge airlines, from £22 to up to £34.40 per passenger for the next five years.
The aviation regulator will consult with Heathrow, airlines and other stakeholders over the next few months to settle on a final figure.
In the interim, it will allow Heathrow to raise its charges to £30 per passenger, starting from January.
Which? travel editor Rory Boland said that regardless of where the price cap is set finally, passengers will ultimately pay for it through higher ticket prices.
He added: “Our research has previously found that airport charges are passed along to passengers through higher fares, so any proposed increase by Heathrow is likely to come from consumers’ pockets.
“Heathrow already has the highest fees of the UK’s major airports so it’s right that the CAA intervenes to investigate whether these further proposed increases are proportional.” The CAA said that any rises would be “affordable” for customers, while at the same time giving the country’s hub airport the ability to invest, without upsetting the recovery of the aviation sector.
However, Heathrow chiefs are not happy as they wanted to raise charges by as much as £43, as they seek to recover pandemic losses.
Airlines are pushing back against having to raise prices because of increased fees charged by Heathrow, given their weak finances and continuing efforts to stimulate the passenger market.
Heathrow said: “While it is right the CAA protect consumers against excessive profits and waste, the settlement is not designed to shield airlines from legitimate cost increases or the impacts of fewer people travelling.”
Richard Moriarty, CAA chief executive, said: “These initial proposals seek to protect consumers against unfair charges, and will allow Heathrow to continue to appropriately invest in keeping the airport resilient, efficient and one that provides a good experience.”