Initial Proposals for Heathrow H8 price cap

STRICTLY EMBARGOED UNTIL 7AM ON TUESDAY 31 MARCH 2026

Aviation regulator publishes Initial Proposals for Heathrow H8 price cap

The UK Civil Aviation Authority has today published its Initial Proposals for the maximum fees that Heathrow Airport Limited (HAL) can charge airlines for using the airport for the H8 regulatory period, which runs from January 2027 until the end of 2031.

The regulator is now consulting on a range for its H8 Initial Proposals, which will set the cap on airport charges at between £27.20 and £30.50 per passenger. The mid-point of our range implies an average charge over H8 of £28.80 compared to average charges over H7 of £28.40. Our mid-point is some 16 percent or £5.40 lower than HAL's forecast and some 25 percent or £5.80 higher than the airlines' proposed charges.

The proposals for the next Heathrow price control are separate from the work the regulator is conducting to support capacity expansion at Heathrow.

The proposals also set incentives for Heathrow to improve both its service quality standards and environmental performance.

Heathrow is planning to invest billions in the coming years to improve airport resilience as well as improvements in consumer services, including baggage handling and security.

The multi-year price caps allow Heathrow to recover efficient costs while setting out incentives for cost-effective investment.

Selina Chadha, Group Director of Consumer and Markets at the UK Civil Aviation Authority, said: "Our primary duty is to protect consumers and at the heart of today's proposals is doing the right thing for passengers using Heathrow airport, while supporting sustainable growth, investment, and efficiency. 

"Our proposals for the airport charges levied by Heathrow on airlines strike the right balance between keeping passenger prices fair, while enabling the airport to make the investment needed to improve services for the future. We encourage all stakeholders to provide us with their views on our initial proposals."

The UK Civil Aviation Authority will publish its final proposals for the H8 price control in November 2026 followed by a Final Decision in April 2027.

Notes to Editors

For further information contact John Cottrill on 07930 248259 or the CAA press office on 0333 103 6000.

·      Further information about today's announcement is available on the UK Civil Aviation Authority website: https://www.caa.co.uk/commercial-industry/economic-regulation-and-competition-policy/heathrow-airport/upcoming-price-control-h8/

·      Under the Civil Aviation Act 2012, HAL is subject to economic regulation through a licence. One of the UK Civil Aviation Authority's primary duties is to further the interests of users of air transport services regarding the range, availability, continuity, cost and quality of airport operation services. In discharging this primary duty, we are required to consider our secondary duties, which include having regard to HAL's ability to finance its activities, economy and efficiency, and that HAL can take reasonable steps to mitigate adverse environmental effects of its licensed activities.

·      One of the main ways we discharge our statutory duties is to set a price cap and service quality standards in HAL's licence, alongside creating incentives for investment and efficiency, typically over 5-year periods. The current price control period, known as H7, covers the period 2022-2026.