Representing the largest ever private sector capital investment in the UK’s transport network, London-Heathrow Airport has announced a £2.3 billion ($3 billion) investment plan to be enacted between 2025 and 2026. The plan will unlock a range of improvements and upgrades at the airport which according to the airport’s owners, “will ensure the UK’s only hub airport and international gateway continues to move forward and provide better service for passengers and businesses.”
The planned investment will total £1.05 billion ($1.37 billion) in the airport’s infrastructure in 2025, plus an additional £1.29 billion ($1.63 billion) to be invested in 2026.
The new investment just announced represents an uplift of £244 million (£317 million) previously announced and will be used to enhance capabilities across all of the airport’s four passenger terminals, including baggage delivery systems, with the overall strategy to support the punctuality of departures and arrivals. The investment program will “improve service, resilience, passenger experience, and sustainability for all passengers at Heathrow,” says the airport.
One example of how the new investment will be used is the airport’s ‘Independent Journeys Project.’ This plan, according to an airport statement, will “empower passengers requiring additional support and give them a choice to travel in the most independent way throughout the airport.” The statement adds that the Active Travel projects will encourage cycling and walking to the airport and between terminals, and are expected to be completed in 2027.
“Heathrow is the UK’s gateway to the world, and ultimately, the country’s gateway to growth,” said Heathrow CEO Thomas Woldbye. “Today’s announcement confirms that we will continue to invest more than £1bn of private sector cash each year into the airport to deliver facilities our airlines and passengers want while boosting the UK economy and creating opportunities for businesses up and down the country.”
Contributing to the UK economy
This latest announcement comes as Heathrow’s Investment Impact Report outlines how Heathrow has made several significant investments in the airport throughout 2024 – investments that have reached £1.1 billion ($1.43 billion) and benefited over 1,100 supply chain partners in the UK.
For example, the investment of £191 million ($248 million) for the upgrading of security lanes over 2024 “has ensured that Heathrow is prepared for the increase in demand expected during the Christmas period and continues to focus on passenger experience, making our airport smarter and smoother for passengers and an even better place to work for colleagues,” said the airport.
Overall, the announcement covering the £2.3 billion ($3 billion) investment plan between 2025 and 2026 will ensure that the airport’s upgrade program will continue until at least 2026. According to the airport, “These investments will ensure that Heathrow continues to provide opportunities for UK businesses of all sizes to grow and thrive while delivering for passengers and businesses that depend on a world-class hub.”
The airport owners state that the increased investment in the gateway will support the UK Government’s mission for national growth. They state, “To deliver the UK’s industrial strategy and support industries that rely on Heathrow’s global connectivity, it is critical that the UK’s international gateway for trade and tourism is fit for the future.”
“These investments over the next two years will drive economic growth across all parts of the UK while allowing Heathrow to continue delivering for passengers and airlines.”
“This investment will also create contract possibilities for businesses and SMEs (Small and Medium-sized Enterprises) nationwide, both local to the airport and across the country. In line with Heathrow’s long track record of supporting and developing its supply chain, it provides support through initiatives including the Business Summit program which connects SMEs to opportunities,” the airport’s statement concludes.
