The UK aviation regulator said it is looking at cutting the fees charged to passengers by Heathrow Airport in 2025 and 2026 due to recommendations from the competition watchdog.
Following advice from the Competition and Markets Authority, the Civil Aviation Authority has launched a six-week consultation today that includes examining a potential 6% cut to the price per passenger that airports charge airlines.
British Airways owner International Consolidated Airlines Group SA (LSE:IAG) is the largest presence at Heathrow, possessing over half the available aircraft slots.
"If, following the six-week consultation, the regulator decides to implement the changes it proposes, then, taken together, it would lead to decreases in Heathrow Airport Limited's charges of around £1.52 in 2025 and £1.58 in 2026," the CAA said.
Heathrow's nominal price per passenger would be capped at an estimated £23.72 per passenger in 2025 and £23.70 in 2026, down from £25.43 in 2024, £31.57 in 2023 and £30.19 in 2022.
The airport complained last year after the CAA announced a cut on the charges, though airlines said the fees were still too high.
Analysts have said changes to the fees could complicate the ongoing sale process led by Heathrow's major shareholder, Spain's Ferrovial.