The UK Civil Aviation Authority (CAA) confirmed on Monday 14 September that Heathrow will be allowed to raise its maximum charge per passenger to £28.66 from 1 January 2027, a small increase on the £28.40 cap the regulator had proposed in a consultation document in June.
The charge is billed to airlines rather than collected directly from passengers at the gate, but carriers build it into the cost of a ticket, so the change will eventually show up in the fares travellers pay through the UK's busiest airport.
The CAA said the increase reflects an updated estimate of Heathrow Airport Limited's previous over-recovery of revenue, which had to be adjusted when the 2027 holding cap was calculated. It described the roughly 1% rise from its summer proposal as not a "significant change".
Neither side in the underlying dispute got the figure it wanted. Heathrow had argued for a cap of £30.77 to help recover early costs from its expansion plans, including a third runway, while British Airways pushed for a lower ceiling of £26.68, pointing to revenue the airport already earns from terminal drop-off charges.
The new £28.66 cap is explicitly a stopgap. Heathrow's current price control period ends in December, and the fresh ceiling will be introduced through modifications to the airport's economic licence to cover a single transitional year. The CAA said the arrangement is intended to protect consumers while it finishes work on Heathrow's longer-term price control framework, a decision due in April 2027 that will set airline economics at the airport for years to come.
Heathrow is partway through a £1.3bn programme of terminal upgrades, spending that feeds into the cost base regulators assess when setting charges. The April 2027 determination is expected to weigh more heavily on future fares, particularly if the airport's third runway plans move forward.
This story is confirmed by reporting from Travel Weekly and Travelling for Business, both of which cite the CAA's final decision published today.
What this means for your journey: nothing changes at the terminal this week, this is a regulatory decision about the charges airlines pay from January 2027, and any effect on ticket prices will be gradual rather than immediate. If you are budgeting for future trips through Heathrow, it is still worth comparing the total cost of getting to the airport, including parking versus public transport, since ground transport costs remain the easiest part of the trip to control. See our public transport guide for options.