Heathrow plans terminal expansions ahead of third runway development

Heathrow is set to invest billions in a comprehensive expansion plan, including new terminal buildings, aircraft stands, passenger infrastructure, and the long-awaited third runway.

British government backs third runway at Heathrow Airport British government backs third runway at Heathrow Airport (Photo: REUTERS/Chris J. Ratcliffe)

These new investments build upon the 拢2.3 billion (US$2.8 billion) in accelerated investment announced by Heathrow in December 2024, which aims to enhance service, resilience, passenger experience, and sustainability through various projects over the next two years.

As part of the upcoming investment, the capacity of Terminals 2 and 5 will be expanded, and the airfield layout will be reconfigured to improve punctuality and increase aircraft stands.

Thomas Woldbye, CEO of Heathrow Airport said that the privately funded programme will, 鈥渦pgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth.鈥�

He added, 鈥淎 third runway is critical for the country鈥檚 future economic success, and I confirm we will submit our plans for a third runway to Government this summer. Ahead of then, as part of a phased expansion programme and supported by the Government鈥檚 clear backing, I am today confirming multi-billion-pound investment plans, 100% privately funded, to upgrade our terminal buildings, enhance passenger experience, and improve resilience and sustainability.鈥�

UK Chancellor Rachel Reeves reccently expressed her support for proposals to construct a third runway at Heathrow Airport, the UK鈥檚 busiest aviation hub. Her endorsement comes a decade after the Davies Commission, an independent review established to assess the need for additional airport capacity in the UK, recommended Heathrow鈥檚 expansion to the government led by then-Prime Minister David Cameron.

The commission鈥檚 2015 report concluded that a third runway would deliver significant economic benefits and improve the country鈥檚 global connectivity, though the project has faced delays due to environmental concerns, political opposition, and legal challenges.

The estimated cost of constructing a third runway at Heathrow Airport has evolved over time, reflecting various factors such as inflation, design modifications, and associated infrastructure requirements. In December 2024, the BBC reported that the cost of building a third runway would be 鈥渁t least 拢14 billion and it would be paid for by the owners of Heathrow Airport鈥�.

Heathrow Airport plans to submit proposals for a third runway to the UK government by summer 2025. If approved, construction could commence by the end of the current parliamentary term, with the runway becoming operational by 2035, according to Thomas Woldbye, CEO of Heathrow Airport.

UK Chancellor backs third Heathrow runway among other infrastructure projects In a speech delivered from Oxfordshire, UK, Rachel Reeves outlined several projects aimed at boosting the UK economy

Beyond expanding the UK鈥檚 aviation capacity, the multibillion-pound investment programme is also expected to provide a major boost to the domestic steel industry. Increased demand for British-made steel could support thousands of jobs across the country, reinforcing the project鈥檚 wider economic impact.

The commitment to using UK-made steel comes in response to concerns within the industry about the tariffs on metal imports to the US imposed by President Donald Trump.

As part of this, Heathrow has committed to maximising opportunities for British steel use, a move welcomed by industry leaders, unions, and the government.

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