Heathrow Airport’s CEO, Thomas Woldbye, has warned that leisurely progress on the airport’s proposed third runway is a “national concern,” as the UK hub faces increasing competition from other European airports. The warning came as Heathrow reported a more than one-third drop in pre-tax profits to £575 million for 2025, down from £917 million the previous year.
Woldbye stated that major decisions regarding the funding model and legal framework for the expansion must be finalized this year to meet Chancellor Rachel Reeves’s timeline for construction to begin by 2029. The project, estimated to cost £49 billion including terminal renovations, aims to add approximately 276,000 flights annually, but Woldbye cautioned that the scale of the undertaking is often underestimated. “I think sometimes people underestimate what we’re doing here. We would like to be transparent,” he said.
The airport’s expansion plans have been under review since Labour came to power, with Woldbye expressing a desire for faster progress on key decision points. He emphasized the need for “safeguards” given the £33 billion investment Heathrow is prepared to craft. The Civil Aviation Authority (CAA) is expected to establish a framework to reassure investors, as Heathrow seeks to ensure the project is fully privately financed.
Passenger numbers at Heathrow reached a record 84.5 million in 2025, but the airport anticipates only modest growth – around 0.6% – in 2026, reaching 85 million passengers. Woldbye attributed this limited growth to capacity constraints, stating that the situation “should be a concern for the country, limiting our growth.” He also noted that Heathrow is already operating at its upper capacity limit.
The concerns over Heathrow’s expansion come as Istanbul Airport is projected to overtake it as Europe’s busiest airport, potentially as early as this year or next, according to Woldbye. He told Reuters on Wednesday, “I would definitely expect maybe that to happen this year, maybe next year.”
Heathrow paid £550 million in dividends to its shareholders, primarily overseas investors including Ardian, Qatar’s sovereign wealth fund, and Saudi Arabia’s sovereign wealth fund. Woldbye defended the dividend payments, citing the airport’s strong performance in 2025 and cash generation.
However, the airport’s growing debt, nearing £19 billion, has drawn criticism from anti-expansion campaigners. Paul McGuinness, chair of the No 3rd Runway Coalition, warned that a government supporting the project could be forced to bail it out, potentially leaving taxpayers to fund an “unfinished hole in the ground.” Heathrow maintains that its debt is not an impediment to the fresh runway.
A review of the Airports National Policy Statement, which provides the legislative basis for the third runway, is currently underway. Woldbye stressed the importance of timely decisions on this front to meet the 2029 construction start date. The airport stated it is not seeking “wholesale change” to the existing regulatory regime governing landing charges, which are set by the CAA on a five-year basis.
