Heathrow Airport unveils £2.3bn investment plan

In boost to the UK economy

Heathrow Airport – the most connected airport in the world – has unveiled a significant £2.3 billion investment plan to upgrade the UK’s only hub airport over the next two years. This marks the most significant private sector capital investment in UK transport infrastructure, representing a £244 million increase from previous forecasts.

Two Gulf sovereign wealth funds, Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority, partly own the airport. 

The new investment plan aims to enhance airport facilities, improve services for passengers and businesses, and support the national mission of economic growth.

The £2.3 billion will fund various essential projects across Heathrow’s terminals, from improving baggage delivery systems to enhancing resilience and ensuring timely departures and arrivals. Additionally, the investment will accelerate the airport’s decarbonisation efforts, aligning with broader sustainability goals. The airport’s operational improvements will enhance passenger experiences and boost Heathrow’s role as a crucial international hub for trade and tourism.

The investment will benefit passengers and create substantial contract opportunities for businesses and SMEs nationwide. These initiatives, which include the Business Summit programme, are designed to link SMEs with potential contracts, helping them grow through their involvement in the airport’s expansion. By supporting local and national businesses, Heathrow aims to ensure its growth benefits the broader UK economy.

Flagship projects

One of the flagship projects under this investment programme is the Independent Journeys project. This initiative empowers passengers who require additional support to travel independently through the airport. Another significant development, the Active Travel projects, will promote cycling and walking to and between terminals. Completion is expected by 2027.

Heathrow’s increased investment underscores its pivotal role in supporting the UK government’s industrial strategy. Heathrow is key to the UK’s global competitiveness as the world’s best-connected airport. These investments will enable the airport to continue offering world-class services. The upgrades are vital for supporting industries relying on Heathrow’s worldwide connectivity and ensuring the airport remains fit for future growth.

Heathrow’s CEO, Thomas Woldbye, noted: “Heathrow is the UK’s gateway to the world and, ultimately, the country’s gateway to growth. Today’s announcement confirms that we will continue to invest more than £1 billion of private sector cash each year into the airport to deliver the facilities our airlines and passengers want while boosting the UK economy and creating opportunities for businesses up and down the country.”

The announcement coincides with Heathrow’s first annual Investment Impact Report, which outlines the airport’s £1.1 billion investment in 2024. This investment has already had a significant impact, benefiting over 1,100 supply chain partners across the UK. A notable component of this year’s investment is the £191 million upgrade to security lanes, which has helped Heathrow prepare for the seasonal surge in passenger numbers over Christmas.

Heathrow has prioritised enhancing the passenger experience, improving airport efficiency and creating a more innovative, smoother environment for travellers. The improvements also aim to make the airport a better workplace for its employees. These efforts align with Heathrow’s long-term strategy of maintaining and enhancing its reputation as a world-leading transport hub.

The £2.3 billion investment is part of a broader programme of planned spending, which includes £1.05 billion allocated for infrastructure upgrades in 2025 and a further £1.29 billion in 2026. The scale of this investment highlights Heathrow’s commitment to continuous improvement, ensuring that the airport remains a critical asset for the UK’s economy and international connectivity.

Heathrow’s accelerated investment plan represents a significant step towards modernising the UK’s global gateway. The £2.3 billion funding boost will benefit passengers, airlines, and businesses while reinforcing Heathrow’s status as a key driver of economic growth in the UK. The upgrades will ensure that Heathrow continues to provide a world-class service for years to come, fostering growth opportunities for businesses nationwide.

Hero image: Heathrow Airport is key to the UK’s ability to compete on the global stage. Credit: Heathrow Airport