UK airport expansion gains Government backing amid industry concerns

Chancellor Rachel Reeves’ endorsement of UK airport expansion has sparked strong reactions across the aviation sector.

Heathrow Airport welcomed the support, emphasising that a third runway could unlock billions in private investment, create jobs, and strengthen the UK’s global economic position. However, it stressed the need for policy changes to streamline airspace modernisation and regulatory frameworks.

London Luton Airport (LLA) highlighted that its proposed expansion—from 19 to 32 million passengers annually—would generate £1.5 billion in economic benefits per year, support 11,000 new jobs, and boost local public services through its revenue-sharing model. The airport emphasised its Green Controlled Growth strategy to balance expansion with sustainability commitments.

Meanwhile, the International Air Transport Association (IATA) supported capacity increases at Gatwick and Luton but criticised Heathrow’s high charges, warning that cost inefficiencies could undermine UK aviation’s competitiveness. IATA also urged immediate action on reducing taxes and incentivising Sustainable Aviation Fuel (SAF) to bolster the industry’s growth and sustainability efforts.