The Civil Aviation Authority (CAA) has instructed Heathrow Airport to lower its passenger fees from 2024.
The airport was hoping that passenger chargers would increase to help fund rising airport costs, whereas airlines wanted the fees lowered to benefit their customers.
According to the CAA, the average maximum price per passenger will fall by about 20% next year from 拢31.57 per traveller to 拢25.43, remaining broadly at the same level until the end of 2026.
According to , prior to the pandemic Heathrow was charging 拢22.91 per passenger. This time around, the airport was lobbying to increase the fee to 拢40.
Heathrow has confirmed that it is taking some time to 鈥渃arefully consider our next steps鈥 after receiving the decision.
鈥淭he 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,鈥 a spokesperson for the airport said. 鈥淭his 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.鈥
The CAA defended its judgement, suggesting that the agency believes that 鈥減assenger volumes are expected to return to pre-pandemic levels鈥.
鈥淲e have carefully considered the sharply differing views from Heathrow Airport Limited and the airlines about the future level of charges,鈥 said Richard Moriarty, CEO of the CAA. 鈥淯nderstandably, their respective shareholder interests lead the airport to argue for higher charges and the airlines to argue for lower charges.鈥
He added: 鈥淥ur job is to reach an independent decision from these conflicting commercial interests and focus on what is in the best interests for the travelling public that will use Heathrow in the years to come.鈥
Executives from various airlines have given their responses to the CAA精东影业 decision.
Luis Gallego, CEO of IAG, said: 鈥淗eathrow already charges three times more per passenger than other major airports in Europe, including Gatwick and Madrid, and five times more than Dublin. If the CAA had fully taken into account industry forecasts of passenger volumes post-COVID, it should result in lower prices for consumers.鈥
Meanwhile Willie Walsh, director-general of the global airlines trade body the International Air Transport Association, said: 鈥淭he marginal improvement in the settlement shows we were right to push the CAA not to take Heathrow精东影业 outrageous claims at face value. But let精东影业 be clear: the CAA is still hostage to Heathrow精东影业 pessimistic passenger outlook, and airlines and passengers will continue to pay one of the highest airport charges in the world.鈥
