
Heathrow Airport has officially submitted a groundbreaking £49 billion ($65 billion) private investment plan to the UK government for a major expansion that includes a third 3,500-meter runway and new state-of-the-art terminals. If approved, the development would allow flights to take off from the new runway within the next decade, dramatically increasing capacity and connectivity for Europe’s busiest airport.
The ambitious project aims to raise annual passenger capacity to 150 million from the current 84 million, with up to 756,000 aircraft movements a year. Central to the expansion is a new terminal complex featuring Terminal 5X, designed to serve as a second main entrance alongside Terminal 5, plus three satellite terminals and a significantly enlarged Terminal 2.
This development will also involve closing Terminal 3 and redeveloping the Central Terminal Area to streamline passenger transfers and enhance operational efficiency.
Heathrow plans to invest £21 billion ($27.9 billion) on runway and airfield infrastructure, £12 billion ($16 billion) on new terminals, and a further £15 billion ($20.7 billion) to modernize existing airport facilities — reflecting increased costs due to inflation and project complexity.
The new runway and initial airfield works are targeted for completion by the mid-2030s, with terminal upgrades phased in over subsequent years. Notably, the entire project is to be privately financed under a regulatory framework designed to protect consumers and ensure timely delivery.
This expansion is expected to add at least 30 new daily routes, boosting domestic and international connectivity, including improved access for regions such as Cornwall, Scotland, and Northern Ireland. Cargo capacity would rise by 50 percent, reinforcing Heathrow’s critical role in facilitating £200 billion in annual trade and supporting UK exporters.
The plan anticipates fostering inclusive economic growth, with an estimated 0.43 percent uplift to UK GDP, and promises tens of thousands of new jobs during construction and operation, with 60 percent of supply chain spending benefiting communities beyond London.
Environmental sustainability is a keystone of Heathrow’s vision, aligned with its net-zero carbon emissions target by 2050. The airport has already reduced flight and ground emissions by 10 and 15 percent respectively since 2019, embracing Sustainable Aviation Fuel and clean energy. The design includes noise reduction measures, improved air quality monitoring, and more efficient airspace to cut delays and emissions.
New terminals will prioritize energy efficiency and support electric vehicles, while infrastructure for low-emission ground operations and SAF will be integrated from the outset.
Despite strong backing from key business groups, airlines such as easyJet, and regional airports endorsing improved connectivity, the expansion faces opposition on environmental grounds. London's Mayor Sadiq Khan remains concerned over noise, air quality, and climate impacts. The government is expected to decide on the proposed plans by September, aiming to balance economic growth with environmental responsibilities.
Heathrow CEO Thomas Woldbye reaffirmed the airport’s readiness to commence work promptly upon approval, citing past successful projects delivered on time and within budget. As the UK’s gateway to the world, Heathrow’s expansion represents a pivotal investment in the country’s long-term infrastructure and global competitiveness.