CAA publishes Initial Proposals for Heathrow H8 price cap
Above: Heathrow.
Copyright CAA
The regulator is now consulting on a range for its H8 Initial Proposals, which will set the cap on airport charges at between £27.20 and £30.50 per passenger. The mid-point of the CAA's range implies an average charge over H8 of £28.80 compared to average charges over H7 of £28.40. The CAA's mid-point is some 16% or £5.40 lower than HAL’s forecast and some 25% or £5.80 higher than the airlines’ proposed charges.
The proposals for the next Heathrow price control are separate from the work the regulator is conducting to support capacity expansion at Heathrow. The proposals also set incentives for Heathrow to improve both its service quality standards and environmental performance.
Heathrow is planning to invest billions in the coming years to improve airport resilience as well as improvements in consumer services, including baggage handling and security.
The multiyear price caps allow Heathrow to recover efficient costs while setting out incentives for cost-effective investment.
Selina Chadha, Group Director of Consumer and Markets at the UK Civil Aviation Authority, said: “Our primary duty is to protect consumers and at the heart of today’s proposals is doing the right thing for passengers using Heathrow airport, while supporting sustainable growth, investment and efficiency.
“Our proposals for the airport charges levied by Heathrow on airlines strike the right balance between keeping passenger prices fair, while enabling the airport to make the investment needed to improve services for the future. We encourage all stakeholders to provide us with their views on our initial proposals.”
The UK Civil Aviation Authority will publish its final proposals for the H8 price control in November 2026 followed by a Final Decision in April 2027.
