Heathrow passenger taxes

It will not probably affect Heathrow passengers as taxes and handling charges are covered in the price of the airline ticket, but the fee airlines pay is set to reduce in 2024. Passing the reduction on is unlikely to be seen by travellers as prices rise all the time, but it helps.

Heathrow Airport has been told to cut its passenger charges, owing to the recovery of passenger numbers following the pandemic.

The Civil Aviation Authority (CAA) confirmed last month its final decision on the so-called H7 settlement, which dictates the annual caps on passenger charges paid by airlines for using the airport until the end of 2026.  The average charge per passenger for 2023 will remain fixed at the current £31.57.  The regulator said this will fall to £25.43 in 2024 and “remain broadly flat at that level” until the end of 2026.

The CAA says that the final decision is based on annual passenger forecasts which expect a return to pre-pandemic levels by 2025, as well as a forecast of 375.5m passengers between 2022 and 2026.

The CAA revealed that the average charge requested by Heathrow was around £40 per passenger, while airlines suggested that the proposed fee should be no more than around £18.50 on average.

In the meantime, Heathrow is progressing with next-generation security scanners and a new baggage system in Terminal 2, replacing the old Terminal 1 operation, some of which is still in use.

Willie Walsh, now Director General of International Air Transport Association (IATA) and former British Airways boss, described the CAA as being “hostage to Heathrow’s pessimistic passenger outlook” and that passengers will “continue to pay one of the highest airport charges in the world.”

More than five million travellers passed through the London hub in February – the airport’s busiest start to the year since 2019.

See also Aviation tax post April - daylight robbery

www.heathrow.com

www.caa.co.uk

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