Next year, Heathrow Airport has been instructed to reduce passenger fees for airlines, which could result in lower ticket prices for passengers. The Civil Aviation Authority (CAA) stated that the decision to reduce the average passenger charge from £31.57 to £25.43 in 2024 was made due to a faster-than-anticipated recovery of passenger numbers following the pandemic.
The CAA stated that the reduced fees would provide passengers with excellent value and allow Heathrow to continue investing in its operations. However, the airport has stated that the decision “makes no sense” and that it “will not benefit consumers in any way.” British Airways and Virgin Atlantic, two of the largest airlines at Heathrow, have long argued that airport fees are the highest in the world. Shai Weiss, chief executive officer of Virgin Atlantic, stated that the regulator had “not gone far enough” in lowering passenger fees and ensuring that Heathrow is protecting consumers as required by law.
Willie Walsh, director-general of the International Air Transport Association, which represents airlines, stated that the governing body was “a prisoner of Heathrow’s pessimistic passenger outlook.” He added that both airlines and passengers would “continue to pay one of the highest airport fees in the world” and that any recurrence of the problems from last summer would be “totally unacceptable.”
In an effort to help the airport survive the pandemic, permission was granted in December 2021 to increase passenger fees for 2022. Now, airlines and Heathrow have six weeks to appeal the CAA’s decision. Richard Moriarty, the chief executive officer of the CAA, stated that they had “considered the sharply divergent opinions” of Heathrow and the airlines regarding the level of fees and that it was understandable that they wished to protect their own interests.
The new decision is a step towards rebuilding aviation services after the industry suffered severe damage during the Covid pandemic, which resulted in the loss of many jobs in the travel industry. It is hoped that introducing lower fees will result in lower costs for passengers while enabling Heathrow to continue investing in its operations.
