Heathrow’s profit heads south despite record passenger numbers amid long wait for third runway
London’s main international gateway had its busiest ever year in 2025, with a record 84.5m passengers taking to the skies at Heathrow Airport, according to its latest set of annual results.
But profit fell by over 37 per cent to £575m. The fees regulators at the Civil Aviation Authority (CAA) allow Heathrow to charge airlines were lower in the period and operating and maintenance costs rose.
In a statement issued alongside the numbers, Heathrow said: “The benefit of higher passenger numbers was offset by lower airport charges set by the CAA, increased maintenance costs and the expenditure needed to support operational performance.”
Revenue rose almost 2 per cent to £3.6bn.
As the long wait for clarity on its multi-billion plans for a third runway continues, the west London hub is operating on the brink of full capacity. It expects “incremental growth” this year to take to the 85m mark.
It said today that “demand continues to outpace the limits of the airport’s current infrastructure reinforcing the need for expansion”.
Heathrow says expansion will cost £50bn
The airport’s own £50bn plans, if they are cleared for takeoff, would mean it could handle around 150m passengers each year. There would be a new 3.5-kilometre runway taking the annual number of flights to 756,000 from 480,000.
Recent media reports have suggested an announcement may only be days away, as Prime Minister Keir Starmer’s government moves to clear the plans before any challenge to his leadership.
Heathrow’s in-house plan is backed by the government over a cheaper rival scheme piloted by the Arora Group, which operates hotels and is active in property asset management.
But a final decision is still to be made after Transport Secretary Heidi Alexander pushed final confirmation back until the government’s review of its over-arching strategy for the UK skies in its Airports National Policy Statement expected this summer.
“Delivering the project remains complex”, Heathrow warned today, adding: “It can only proceed once the necessary regulatory and policy frameworks are firmly in place to enable the next phase of delivery.
“To deliver the full benefits to customers and the country and to ensure it is fully privately financed, the CAA must put in place the framework that gives investors confidence. Decisions on these key issues are expected throughout 2026.”
‘Very close to capacity’
Expansion of Heathrow is seen as vital in the City, for its role as a globally connected centre of business, and for the wider UK national economy. The 80-year-old airport handled more than a quarter of the country’s trade by value in 2025, worth around £300bn. Cargo exports were worth around £127bn.
With the airport at capacity for passengers, just over 97 per cent of travellers waited less than five minutes for security in 2025.
Last August, Heathrow became the first ever European airport to exdeed 8m passenger in a single month. And every month of the peak summer season exceeded 7m passengers.
Fears over a potential shortage of jet fuel into this year’s peak summer season followed the outbreak of war in the Middle East. But there was no sign of any such problem arriving from Heathrow in its update on Thursday.
The airport’s chief executive, Thomas Woldbye, said: “In 2026, we’ll continue progressing our plans so we can deliver for both our customers and for the country.”
“With the airport now operating very close to capacity, the next chapter is crucial to our success. Expansion will unlock significant economic benefits and create an extraordinary airport,” he added.
