London Heathrow plans £1.3bn upgrade programme for 2026 after record performance in 2025

London Heathrow Airport has announced a £1.3 billion investment programme for 2026, following a strong 2025 marked by record traffic growth and its recognition as Europe’s most punctual hub airport. The investment is part of Heathrow’s current five-year H7 plan and aims to further improve passenger experience, operational resilience and accessibility, while supporting the UK supply chain.

Key projects include the start of a major redevelopment of Terminal 4, featuring a new multi-storey car park and upgraded check-in facilities, with phased construction running through to 2031. Heathrow will also begin building a new dedicated baggage system for Terminal 2, designed to handle up to 31,000 bags per day and significantly reduce misconnected luggage.

Operational efficiency will be enhanced through the rollout of an AI-enabled camera network across aircraft stands to speed up turnarounds and improve punctuality, with full airport coverage expected by the end of 2026. Targeted investment will also improve services for passengers with reduced mobility, including a new assistance facility in Terminal 2, upgraded support areas across the airport, and the launch of a personalised “Tailored Travel Guide”.

Heathrow said the programme builds on recent performance improvements, which saw almost 99% of bags travel on scheduled flights and 97% of security queues under five minutes in 2025. While separate from plans for a future third runway, the investment reinforces Heathrow’s strategy to become a more efficient, resilient and passenger-focused airport.