Heathrow announces £2.3bn infrastructure investment

London Heathrow will receive a £2.3 billion private sector investment boost over the next two years to fund airport upgrades.

The UK hub on Wednesday (18 December) said the funds represent the largest private sector capital investment in the UK’s transport network, and an uplift of £244 million on previously forecasted investments.

The plan will see £1.05 billion invested in the airport’s infrastructure in 2025, and an additional £1.29 billion provided in 2026.

The funding will be used to enhance capabilities across all terminals, including baggage delivery and improving flight punctuality, as well as to support improvements in passenger service and to “accelerate” the airport’s decarbonisation efforts.

The announcement comes after the airport reported ‘record’ passenger growth throughout 2024 and after a recent plea to the new UK government to “focus” on growing aviation and helping the sector to decarbonise.

The airport said the investment programme “will improve service, resilience, passenger experience, and sustainability for all passengers at Heathrow”. This investment will also create contract possibilities for businesses and SMEs across the UK, the airport said.

Heathrow CEO Thomas Woldbye added: “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 £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.”