Virgin Atlantic and International Airlines Group (IAG), the parent company of British Airways, have challenged the UK government's economic case for a third runway at Heathrow, warning in evidence submitted to the Commons Transport Committee that rising costs could make the expanded airport too expensive for airlines and passengers.
The submissions, reported by the Evening Standard and Aviation A2Z on Wednesday 19 August, argue that the government's benefits case rests on a flawed assumption that airlines can cut fares even as airport charges rise sharply. Virgin Atlantic said the core cost of the third runway is now estimated at 33 billion pounds, rising to 49 billion pounds once terminal and wider infrastructure work is included, which it called potentially the world's most expensive airport scheme ever built.
IAG has separately urged the government to impose a 30 billion pound cap on the project, arguing the current 49 billion pound figure could push passenger charges substantially higher and erode Heathrow's competitiveness against European and Gulf hubs. Both airlines are calling for an affordability test to be added alongside the scheme's existing assessments on climate change, noise, air quality and economic growth.
The criticism comes as the Department for Transport advances its draft Heathrow Expansion National Policy Statement, the framework for assessing the proposed Northwest Runway. Public consultation opened in June 2026 and parliamentary scrutiny is due to continue until 26 November.