Heathrow Airport in London experiences all-time highest daily traffic
Heathrow Airport is planning a significant expansion, with the addition of a third runway and new terminal infrastructure, aiming for completion between 2035 and 2040. The project, valued at over £20 billion, is expected to enhance the UK economy, increase flight capacity, and improve the airport's global competitiveness.
The expansion plans centre around a north-west runway approximately 3,500 meters long, accompanied by new terminals, including a major new terminal called T5X, expansions of existing terminals, and three satellite terminals. The total estimated cost of this expansion ranges between £21 billion and £25 billion, primarily financed through private investment.
The expansion is projected to significantly increase flight capacity to around 756,000 flights annually and accommodate about 150 million passengers per year. The project is also expected to add approximately 0.43% to the UK’s GDP, with about 60% of the economic benefits extending outside London and the South East.
The original expansion proposal, including the northwest runway and terminal development, was approved by the UK Government in 2016. However, due to various revisions and competing proposals, the delivery timeline has shifted from an initial anticipated opening in the mid-2020s to the mid-2030s.
Competing proposals, such as the Arora Group’s "Heathrow West," emphasize cost efficiency and quicker delivery by avoiding complex construction over the M25 motorway, reducing both costs and environmental effects. The UK Government has actively invited competitive proposals to optimize the expansion’s cost, sustainability, and efficiency.
The expansion faces challenges, including managing environmental impacts and financing, as Heathrow Holdings already has significant borrowings. However, Heathrow Airport officials attribute the 'stagnation' in passenger numbers to capacity limits of the airport. Heathrow chief executive Thomas Woldbye stated that the airport continues to break records and has set out a plan to expand Heathrow privately.
In July 2025, Heathrow Airport handled 7,981,137 passengers, an absolute record for the airport. The airport also reported its busiest day ever on 1 August 2025, with 270,869 passengers. The £20 billion runway project is part of a larger infrastructure overhaul, with commitments to upgrade public transport infrastructure to reduce environmental impact, such as enhanced rail capacity and improved pedestrian and cycling pathways.
Chancellor Rachel Reeves has been advocating for the expansion project to boost the British economy. Despite the challenges, the expansion of Heathrow Airport is a major infrastructure project that aims to deliver better services, wider choices for customers, and growth for the UK economy.
References:
[1] Heathrow Airport (2022). Heathrow Expansion. [online] Available at: https://www.heathrow.com/media/heathrow-expansion
[2] The Arora Group (2022). Heathrow West. [online] Available at: https://www.heathrowwest.co.uk/
[3] Department for Transport (2022). Heathrow Expansion. [online] Available at: https://www.gov.uk/government/publications/heathrow-airport-expansion
[4] Airports Council International (2022). Heathrow Airport Expansion. [online] Available at: https://www.aci.aero/economics/airport-economics/airport-economic-research/heathrow-airport-expansion
[5] House of Commons Library (2022). Heathrow Airport Expansion. [online] Available at: https://commonslibrary.parliament.uk/research-briefings/cbp-8625/
During the expansion, Heathrow Airport plans to introduce a new terminal called T5X and develop satellite terminals. This eco-friendly journey aims to provide more sports events access, as increased flight capacity will enable the accommodation of around 150 million passengers per year.
In spite of the challenges, such as managing environmental impacts and financing, the expansion of Heathrow Airport is expected to boost the UK economy and provide better services, wider choices for customers, and growth for the nation.
