Passengers to pay less for flights as Heathrow is told to cut charges

‘We will respond to the Civil Aviation Authority’s consultation on charges in due course’

PASSENGERS will pay less for flights in and out of Heathrow after the aviation regulator ordered the airport to cut the fees it charges airlines.

Yesterday, the Civil Aviation Authority (CAA) ruled that Heathrow must cut the amount it charges carriers next year and the year after, imposing deeper reductions than previously announced.

The cap on how much Heathrow can charge carriers this year will fall from £31.57 to £26.78 per passenger, under previously announced changes. But the watchdog has proposed extra reductions in 2025 and 2026, cutting the maximum fees Heathrow can charge by more than it had previously suggested.

The CAA had previously proposed caps of £25.24 and £25.28 per passenger in 2025 and 2026 respectively. These will now fall further to £23.72 and £23.70. The reductions will benefit passengers because in practice the fees are passed on to consumers through fares.

It comes after Heathrow and some airlines challenged the CAA’S previous cap decision with the Competition and Markets Authority last year. The airport argued for a higher rate of £42 per passenger. However, British Airways, Delta Air Lines and Virgin Atlantic instead argued it should be lower than £20.

Airlines have accused Heathrow of abusing its market position. Heathrow’s bosses insist higher fees are needed to fund investment in infrastructure modernisation and maintenance.

Following those challenges, the Competition and Markets Authority ruled mostly in favour of the CAA’S proposals, but told it to revisit certain calculations.

Yesterday, in the wake of that ruling, the CAA said that it had looked again at the numbers and came up with new proposals “in the interest of consumers”. The changes include an inflation-linked increase to the cap for 2024, which is rising by £1.35 per passenger, and further cap reductions of £1.52 in 2025 and £1.58 in 2026.

In a statement, the CAA said it would consult on the new proposals for six weeks. A Heathrow spokesman said: “We will review the impact of the CAA’S latest proposals and respond to the consultation in due course.”