Heathrow has confirmed plans to increase capacity at two of its terminals, in what its CEO said would be “the largest private investment programme in Heathrow’s history”.
The announcement follows new backing for a third runway by the Labour government last month.
Full details of the investment programme, how it will be phased, and “the pathway to a third runway” will form part of Heathrow’s initial proposals which will be submitted to government this summer.
But the airport said that it would “work with airlines and the regulator to finalise plans to invest in the capacity of Terminal 2 and make changes to optimise and increase passenger capacity in Terminal 5”.
Heathrow’s £4.3 billion Terminal 5 opened in 2008, followed by Terminal 2 (also known as The Queen’s Terminal) in 2014.
The airport has previously announced plans for a new baggage system at T2 – the terminal currently uses a 30-year-old system housed within the airport’s Terminal 1, which closed to passengers in 2015 after 47 years of operation.
Investment is also planned to reconfigure and improve the layout of the airfield, including increasing the number of aircraft stands.
And plans will also be published to “further improve bus and coach connections to encourage sustainable and active travel options and benefit our local communities”.
The airport also said that new infrastructure would have “improved environmental credentials and will use more sustainable sources of power, supporting the ambitious targets set out in Heathrow’s Connecting People and Planet sustainability strategy”.
Heathrow added that tangible benefits of the privately funded programme would be felt “this year”.
Thomas Woldbye at British Steel Scunthorpe (image from https://mediacentre.heathrow.com/)
The plans were announced in a speech delivered by Heathrow’s CEO Thomas Woldbye at British Steel Scunthorpe, in which he confirmed the airport had signed the UK Steel Charter, which aims “to maximise supply chain opportunities for UK steel producers”.
“This privately funded programme will upgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth, with tangible benefits felt this year,” said Woldbye. “Heathrow is proud to answer the Chancellor’s call to get Britain building.”
“A third runway is critical for the country’s future economic success, and I confirm we will submit our plans for a third runway to Government this summer.
“Ahead of then, as part of a phased expansion programme and supported by the Government’s clear backing, I am today confirming multi-billion-pound investment plans, 100% privately funded, to upgrade our terminal buildings, enhance passenger experience, and improve resilience and sustainability.
“This is vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown – the UK’s Gateway to Growth.
“With strict environmental safeguards, expanding Heathrow will prove that the UK economy can be grown responsibly and deliver on commitments to future generations. This project can only go ahead if we meet the rules on noise, air quality and carbon that the Government sets out in the Airports National Policy Statement – it’s as simple as that.
“Even though we’re serving more passengers than ever before, our noise footprint is smaller and we’re also using more sustainable aviation fuel than ever before.
“I want to assure you that we are committed to listening and working with our local communities to provide them with the certainty they deserve, ending years of doubt.”
Heathrow is targeting 84.2 million passengers in 2025, following record-breaking figures of 83.9 million passengers in 2024.
