Heathrow announces £1.3bn investment plan following strong 2025 performance

Heathrow Airport has unveiled plans to invest £1.3bn in 2026, aiming to enhance passenger services and airport operations as part of the airport’s ongoing capital programme to improve infrastructure and reliability.

image: Heathrow Airport

The funding will support upgrades across several areas of the airport. Works will include a phased redevelopment of Terminal 4 — featuring a new multi-storey car park and modernised check-in facilities — with completion expected by 2031. Construction is also set to begin on a dedicated new baggage handling system for Terminal 2, designed to improve resilience and capacity by handling up to 31,000 bags per day.

Heathrow is also investing in technology to streamline operations, including the rollout of a network of cameras across aircraft stands that will use artificial intelligence to speed up turnaround times between flights. The programme is expected to be fully implemented across all terminals by the end of 2026.

In addition, the airport said it will focus on improving services for passengers with accessibility needs. Plans include a new purpose-built assistance area in Terminal 2, offering dedicated access to security, and the launch of a Tailored Travel Guide — a personalised tool to help travellers with specific requirements navigate the airport.

Heathrow CEO Thomas Woldbye said, “Passengers should expect that every time they travel through Heathrow their journey is better than the last. I’m excited to unveil next year’s programme which will make Heathrow more user-friendly, more efficient and more resilient for our customers. This investment will flow directly into our nationwide supply chain helping to drive economic growth whilst we make Heathrow even better and more efficient for our customers.”

The announcement is part of Heathrow’s current five-year investment programme (known as H7). Separately, the Government would also like Heathrow to expand with a third runway that is operational in a decade. Plans for that project and for investment during the next five-year investment period from 2027-31 (H8), says Heathrow, depend on the Government and CAA putting in place the necessary policy and regulatory frameworks to deliver them successfully.