Irish air fares to Heathrow set to hike under plan to fund airport's upgrade 

Heathrow is the most popular destination from both Cork and Dublin Airport

Passengers in the arrivals hall at Heathrow. Heathrow Airport has unveiled a £10bn investment plan to expand capacity, aiming to handle an extra 10m passengers per year by 2031. Picture: Maja Smiejkowska/PA Wire

Irish passengers travelling through Heathrow will face higher air fares as part of plans to fund upgrades at London's premier airport.

Heathrow Airport has unveiled the £10bn (€11.5bn) investment plan to expand capacity, aiming to handle an extra 10m passengers per year by 2031. The plan forms the core of the airport's 2027-2031 business proposal, which was submitted to Britain's Civil Aviation Authority (CAA) on Friday.

It would require passenger charges being set an average of £33.26 (€38.43) during the period, Heathrow said. That is compared with an average of £28.46 (€32.89) between 2022 and 2026.

Heathrow is the most popular destination for airline traffic from both Cork Airport and Dublin Airport, with Aer Lingus operating the Cork service and both Aer Lingus and British Airways operating the route from Dublin.

International Airlines Group (IAG), the parent company of both Aer Lingus and British Airways, branded the plans to increase air fares as "excessive" and said it could lead to 25% increases in airport charges.

"IAG welcomes Heathrow’s intent to improve passenger experience. Heathrow Airport Limited has submitted its initial business plan for 2027–2031, but it requires significant revision," an IAG spokesperson told the Irish Examiner. 

"The proposed 25% increase in charges is excessive, particularly given that Heathrow is already the most expensive airport in the world and this plan does not increase capacity. The suggested £10bn investment would be paid for by passengers and airlines, raising serious concerns about affordability and value for money.” 

Heathrow is Europe's busiest airport, with more than 83.9m passengers travelling through its terminals in 2024.

In February, IAG, whose director general is former Aer Lingus chief executive Willie Walsh, warned that passengers and airlines are paying £1.1bn (€1.27bn) more each year than if charges were in line with equivalent major European airports.

The UK's CAA determines the cap on per-passenger landing charges that airlines must pay to Heathrow. Airlines pass on the cost of these to passengers through fares.

The investment plan would create new space within existing terminals equivalent to 10 football pitches, enabling new lounges, restaurants and shops to be built.

It would also result in faster security and baggage handling, according to the airport.

Heathrow's aim is for 95% of passengers to wait less than five minutes at security, 99% of bags to travel with their owner, and 80% of flights to depart on time.

The airport is seeking to demolish the building previously used as Terminal 1, extend Terminal 2, and build a new southern access road tunnel.

Once complete, the project would enable Heathrow to increase its passenger capacity by 12%, equivalent to 10m more travellers annually.

Heathrow chief executive Thomas Woldbye said: "We're making good progress on our strategy to become an extraordinary airport - having become Europe's most punctual major airport so far this year.

"But our customers want us to improve our international rankings further, as do we. To compete with global hubs, we must invest. Our five-year plan boosts operational resilience, delivers the better service passengers expect and unlocks the growth capacity airlines want with stretching efficiency targets and a like-for-like lower airport charge than a decade ago.

"That means faster security, smoother baggage handling, more comfortable terminals, new lounges, restaurants and shops - all while delivering a better service for the growing number of passengers who need assistance."

- Additional reporting by PA