UK regulator proposes further cuts to Heathrow charges

The Civil Aviation Authority said on Wednesday that it could potentially lower by 6% the proposed cap on passenger charges paid by airlines for 2025 and 2026 to take into account the competition regulator's recent findings. "It is the UK Civil Aviation Authority's intention to make its decision on whether to modify Heathrow Airport Limited's Licence in the manner proposed in the summer of 2024.

Britain's aviation regulator said it could further reduce the fees charged by Heathrow Airport, the country's largest hub, next year and in 2026, as it started a six-week consultation on the matter. The Civil Aviation Authority said on Wednesday that it could potentially lower by 6% the proposed cap on passenger charges paid by airlines for 2025 and 2026 to take into account the competition regulator's recent findings.

"The UK Civil Aviation Authority intends to make its decision on whether to modify Heathrow Airport Limited's Licence in the manner proposed in the summer of 2024. Adjustments will be spread evenly over 2025 and 2026," the CAA said in a statement. The CAA announced last year that it would cut the cap on Heathrow charges for 2024-2026, angering both the airport, which said the cuts would deter investment, and airlines who said the airport's fees were still too high.

The proposed cuts would be in the interests of consumers said the CAA, and follows recommendations by the Competition and Markets Authority to re-examine its proposed fees. The changes if confirmed could complicate an ongoing sale process led by Heathrow's major shareholder Ferrovial.

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