Heathrow Loses Appeal to Raise Passenger Charges in 2024

Heathrow Airport (LHR) has been unsuccessful in its attempt to raise passenger charges for airlines using its facilities in 2024. The UK Competition and Markets Authority (CMA) has provisionally upheld the decision of the UK Civil Aviation Authority (CAA) to reduce the average charge per passenger at Heathrow from £31.57 in 2023 to £25.43 in 2024.

Heathrow Airport had appealed to the CMA against the CAA’s ruling, arguing that it required additional revenue to support its investment plans and recover from the impact of the COVID-19 pandemic. The airport had proposed an increase in charges to over £40 per passenger.

However, the CMA stated that while the CAA had made some errors in its calculations, these would not significantly alter the level of charges. The CMA also anticipated that travel demand would return to pre-pandemic levels starting in 2024, and lower charges would benefit both passengers and airlines.

The provisional ruling by the CMA was welcomed by airlines, which had also appealed to the CMA, contending that the CAA’s decision was still too high and based on pessimistic passenger forecasts. Airlines argued that Heathrow Airport had prioritized shareholders over consumers and that reduced charges would promote more competition and choice for travelers.

The CMA will now consider input from Heathrow Airport, airlines, and the CAA regarding its provisional findings. A final decision is expected to be published by the CMA by October 17. This final decision will determine the maximum charges that Heathrow can impose on airlines for the period from 2024 to 2026.

Sources: AirGuide Business airguide.info, msn.com, theguardian.com