Heathrow Airport has hit out at the UK Civil Aviation Authority’s (CAA) decision to require the airport to cut passengercharges, saying the decision “makes no sense”.
The CAA today set out its annual caps on the charges Heathrow levies on airlines operating flights there until the end of 2026.
The price will fall from £31.57 per passenger in 2023 to £25.43 for the following three years.
“This lower level of charges from 2024 recognises that passenger volumes are expected to return to pre-pandemic levels and should benefit passengers in terms of lower costs, while also allowing Heathrow Airport Limited to continue investing in the airport for the benefit of consumers and supporting the airport’s ability to finance its operations,” the CAA said.
However, Heathrow slammed the decision. A spokesperson pointed out that while airlines have returned to profit, the airport is still loss-making, recording pre-tax losses of £684 million in 2022 and revealing it had no plans to pay a 2023 dividend.
“The CAA has chosen to cut airport charges to their lowest real terms level in a decade at a time when airlines are making massive profits and Heathrow remains loss-making because of fewer passengers and higher financing costs,” the spokesperson said.
“This makes no sense and will do nothing for consumers at a time when the CAA should be incentivising investment to rebuild service. We will now take some time to carefully consider our next steps.”