Heathrow’s £2.3bn boost to infrastructure and retail

By Benedict Evans |

 – TRBusiness

Planned investments total £1.05bn in Heathrow Airport’s infrastructure in 2025, and an additional £1.29bn to be invested in 2026.

Heathrow has announced a £2.3 billion pound accelerated investment plan to upgrade the airport over the next two years. It is the largest private sector capital investment in UK transport infrastructure, with an increase of almost a quarter of a billion compared to previous estimates.

The investment plan will fund projects such as accelerating the airport’s decarbonisation, and over the two years will create contract opportunities for businesses and SMEs nationwide

The £2.3 billion investment is an uplift of £244 million on previously forecasted investments which will be used to enhance capabilities across all terminals, including baggage delivery and projects to support punctual departures and arrivals.

The increased investment comes as Heathrow has published its first annual Investment Impact Report illustrating the impact of Heathrow’s £1.1bn investment in 2024.

The report outlines how Heathrow has made significant investments in the airport in 2024, reaching £1.1bn and benefiting over 1,100 supply chain partners in the UK.

The £191 million investment to upgrade security lanes over the course of 2024, for example, has ensured that Heathrow is prepared for the increase in demand expected during the Christmas period and continues to focus on passenger experience.

 – TRBusiness

Fraser Brown, Retail Director at Heathrow Airport.

Fraser Brown, Retail Director for Heathrow Airport, provided context on the potential commercial impact of the forthcoming multi-billion pound investment.

He noted that Heathrow is welcoming more and more passengers who, in growing numbers, expect a great digital and physical retail offering.

Heathrow believes it is critical that this area gets the right amount of attention and investment, with the £2.3bn investment contributing towards continued upgrades to retail at Heathrow, including its Pay-in-Advance digital retail model.

For context, Heathrow’s  December Investor Report forecasts that Heathrow’s non-aeronautical retail income will increase to £758m and £773m in 2024 and 2025, respectively.

Heathrow noted it will build upon the successes it has achieved in the retail space by continually investing in Heathrow’s offering.

The upcoming investment programme will improve service, resilience, passenger experience, and sustainability for all passengers at Heathrow.

The Independent Journeys Project, for example, will empower passengers requiring additional support and give them a choice to travel in the most independent way throughout the airport.

Active Travel projects will encourage cycling and walking to the airport and between terminals, and are expected to be completed in 2027.

Thomas Woldbye, CEO of Heathrow, said: “Heathrow is the UK’s gateway to the world, and ultimately, the country’s gateway to growth.

We will continue to invest more than £1bn of private sector cash each year into the airport to deliver facilities our airlines and passengers want, while boosting the UK economy and creating opportunities for businesses up and down the country.”

 – TRBusiness

Critically, Heathrow’s increased investment serves to support the UK Government’s national mission for growth.

To deliver the UK’s industrial strategy and support industries that rely on Heathrow’s global connectivity, with  these investments over the next two years intended to drive economic growth across all parts of the UK while allowing Heathrow to continue delivering for passengers and airlines.

This investment will also create contract possibilities for businesses and SMEs nationwide, both local to the airport and across the country.

In line with Heathrow’s track record of supporting and developing its supply chain, it provides support through initiatives including the Business Summit programme which connects SMEs to opportunities.

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