Hopes rise for decision on Heathrow’s third runway plan
Hopes for full government backing this summer for Heathrow’s expansion plans were rising on Thursday, with London’s main airport operating on the brink of full capacity.
A report in The Times said Prime Minister Keir Starmer’s government is moving to clear the plans before any challenge to his leadership from Andy Burnham, with voting underway in the Makerfield by-election that could return the Manchester mayor to parliament.
Heathrow’s in-house £50bn plans for a third runway, if cleared for takeoff, would mean it could handle around 150m passengers each year.
According to its latest financial results, a record 84.5m passengers took to the skies from the 80-year old West London gateway. It expects to hit 85m, this year.
The expansion would add a new 3.5-kilometre runway taking the annual number of flights to 756,000 from 480,000. The government chose the plan over a cheaper rival plan drawn up 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.
It may now come sooner rather than later, depending on the latest twists and turns of Westminster politics.
Third runway would boost City
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.
Last August, Heathrow became the first ever European airport to exceed 8m passengers 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. Disruption there boosted the number of passengers making international connections at Heathrow, taking it even nearer to capacity.
Delivering the expansion plan “remains complex”, Heathrow warned, 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.”
Heathrow expansion ‘crucial’
With the airport at capacity for passengers, just over 97 per cent of travellers waited less than five minutes for security in 2025.
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 allow Heathrow to charge airlines were lower in the period and operating and maintenance costs rose.
Revenue for 2025 rose almost 2 per cent to £3.6bn.
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.
