Heathrow Boss Urges National Action on Third Runway Delays
Heathrow Airport's chief executive, Thomas Woldbye, has declared that sluggish progress on the £33 billion third runway project should be a matter of national concern. He emphasized that critical decisions on funding and legal frameworks must be made this year to align with Chancellor Rachel Reeves' timeline, which aims for construction to commence by 2029.
Expansion Challenges and Financial Pressures
Woldbye highlighted that the expansion, costing a total of £49 billion including terminal upgrades, essentially involves building "almost a whole new airport" in west London. The new runway could facilitate approximately 276,000 additional flights annually, with completion expected by 2035 at the earliest. However, Heathrow reported a significant drop in pre-tax profits, falling by more than a third to £575 million in 2025 from £917 million in 2024, attributed to reduced landing charges and increased maintenance costs.
Despite record passenger numbers reaching 84.5 million, growth is constrained by capacity limits. "We are running out of space... that should be a concern for the country, limiting our growth," Woldbye stated. He called for transparency in the planning process, noting that the physical impact of the project remains consistent with proposals from the past 15 years.
Funding and Regulatory Hurdles
To ensure the project is fully privately financed, Heathrow insists that the Civil Aviation Authority (CAA) must establish a framework that instills investor confidence. The CAA regulates landing charges on a five-year basis, and airlines are apprehensive about potential hikes to fund the third runway. Woldbye assured that Heathrow is not seeking a "wholesale change to the regime" but requires safeguards before committing £33 billion.
Additionally, a review of the Airports National Policy Statement, which provides legislative backing for the runway, is underway. Woldbye stressed that meeting the chancellor's deadlines hinges on timely decisions this year.
Shareholder Returns and Debt Concerns
Following a five-year pause, Heathrow distributed £550 million in dividends to shareholders, primarily overseas investors led by private equity firm Ardian and the sovereign wealth funds of Qatar and Saudi Arabia. Woldbye justified this move, citing strong performance and cash generation in 2025.
However, anti-expansion campaigners, such as Paul McGuinness of the No 3rd Runway Coalition, point to Heathrow's escalating debt, now nearing £19 billion, as a red flag. McGuinness warned that government support could lead to taxpayer bailouts if the project falters. Heathrow maintains that this debt does not impede the new runway's feasibility.
Woldbye concluded that while the project has restarted under Labour's governance, faster progress is essential to avoid further delays and support the UK's aviation growth ambitions.
