Heathrow given permission to raise passenger charges by more than 50% after £3.4 billion loss

Heathrow has been given permission to increase charges by more than 50% from January 1.

The Civil Aviation Authority (CAA) said the cap on the west London airport’s price per passenger next year will be £30.19.

The current charge is £19.60.

Charges are paid by airlines but are generally passed on to passengers in air fares.

A decision on a long-term cap which is expected to begin in summer 2022 and run to 2027 is due to be announced early next year.

A spokesman for Heathrow, which had called for the cap to range from £32 to £43, said it was “extremely disappointed” in the interim figure of £30.19.

He claimed it “relies on rushed analysis and will undermine passenger experience” at the airport.

He went on: “There are material and basic errors in many aspects of the CAA’s assessment.

“Uncorrected, this risks leaving Heathrow without sufficient cash flow to support investment in improving passenger service and resilience.”

The £30.19 cap “reflects the uncertainty of the recovery of passenger volumes at the airport from the pandemic, particularly following the emergence of new information about the Omicron variant of Covid-19”, according to the CAA.

The cap will move up or down depending on factors such as passenger numbers and commercial revenue.

Heathrow said in September its losses from the Covid-19 pandemic had hit £3.4 billion.

Passenger numbers are around 40% of pre-pandemic levels.