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Construction & Architecture

Heathrow launches multi-billion pound investment program

Elizabeth BakerBy Elizabeth BakerFebruary 21, 20256 Mins Read
In response to the UK government’s support for expansion at Heathrow, Thomas Woldbye, CEO of Heathrow, has announced the largest private investment program in Heathrow’s history and confirmed the airport is developing proposals for a third runway to share with the government by the summer of 2025. 
In response to the UK government’s support for expansion at Heathrow, Thomas Woldbye, CEO of Heathrow, has announced the largest private investment program in Heathrow’s history and confirmed the airport is developing proposals for a third runway to share with the government by the summer of 2025. 

In response to the UK government’s support for expansion at Heathrow, Thomas Woldbye, CEO of Heathrow, has announced the largest private investment program in Heathrow’s history and confirmed the airport is developing proposals for a third runway to share with the government by the summer of 2025.

The latest plans will include new investment in terminal infrastructure, improving customer experience and punctuality, local transportation connections and sustainability. Heathrow will work with airlines and the regulator to finalize plans to invest in the capacity of Terminal 2 and make changes to optimize and increase passenger capacity in Terminal 5. The airport will also reconfigure and improve the layout of the airfield, increasing the number of aircraft stands to improve resilience and punctuality.

The investment program also includes plans to further improve bus and coach connections to encourage sustainable and active travel options and benefit local communities and stated that new infrastructure will have improved environmental credentials and will use more sustainable sources of power, supporting the ambitious targets set out in Heathrow’s Connecting People and Planet sustainability strategy.

This privately funded program to transform Heathrow’s current infrastructure will start with projects within the airport’s existing boundary and work toward a third runway.

Construction goals

The plans are intended to help the airport become more efficient, reliable and sustainable for all passengers and airlines at Heathrow. These new investments build on the £2.3bn (US$2.9bn) investment announced by Heathrow in December 2024 to improve service, resilience, passenger experience and sustainability through multiple projects over the next two years.

In an address delivered at at British Steel Scunthorpe, Woldbye said, “This privately funded program will upgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth, with tangible benefits felt this year. Heathrow is proud to answer the chancellor’s call to get Britain building. A third runway is critical for the country’s future economic success, and I confirm we will submit our plans for a third runway to the government this summer.  Ahead of then, as part of a phased expansion program and supported by the government’s clear backing, I am today confirming multi-billion-pound investment plans, 100% privately funded, to upgrade our terminal buildings, enhance passenger experience, and improve resilience and sustainability. This is a vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown – the UK’s Gateway to Growth.”

Impact on the local community

Heathrow’s phased investment program for airport modernization and expansion is also projected to create opportunities for UK businesses and industries, during this parliament and beyond.

As a sign of its commitment to ensuring positive benefits nationwide, Heathrow has also signed the UK Steel Charter. The charter aims to maximize supply chain opportunities for UK steel producers. According to the most recent study from Frontier Economics, a third runway could increase UK GDP by 0.43% by 2050. Over half, 60% of that boost, would go to areas outside London and the Southeast. The project is supported by over 30 Chambers of Commerce and business groups up and down the country including the CBI, MakeUK, British Chamber of Commerce and the Federation of Small Businesses; airports including Newcastle Airport and Cornwall Newquay; and trades unions including Community Union, GMB and BALPA.

To develop and finalize proposals to expand the UK’s only hub airport and largest port by value, Heathrow will now engage with key stakeholders including airlines and local communities.

In his address, as well as recognizing the scale of the prize to be won, Woldbye committed that Heathrow’s plans would demonstrate that the project could deliver for the economy and the environment.

“With strict environmental safeguards, expanding Heathrow will prove that the UK economy can be grown responsibly and deliver on commitments to future generations. This project can only go ahead if we meet the rules on noise, air quality and carbon that the government sets out in the Airports National Policy Statement – it’s as simple as that,” he said.

“Even though we’re serving more passengers than ever before, our noise footprint is smaller and we’re also using more sustainable aviation fuel than ever before. I want to assure you that we are committed to listening and working with our local communities to provide them with the certainty they deserve, ending years of doubt.”

Gareth Stace, director-general of UK Steel, said, “Signing the UK Steel Charter is a vital commitment to strengthening Britain’s industrial backbone, ensuring our steel industry continues to support high-quality jobs, drive investment and play a central role in the UK’s economic future. By prioritizing UK-made steel in major projects, businesses can build a more resilient and sustainable supply chain, keeping value and expertise within the UK.

“Heathrow signing the UK Steel Charter is a major vote of confidence in UK steelmaking and British businesses, full stop. With the airport embarking on its largest-ever private investment program, this commitment unlocks significant opportunities for UK steel producers and supply chains to help deliver critical national infrastructure. Backing UK steel means backing UK jobs, innovation, and long-term industrial growth, ensuring the benefits of Heathrow’s expansion are felt nationwide.”

Zengwei An, CEO of British Steel, said, “We’re proud to be backing a third runway and the proposed expansion of Heathrow. Major developments like this, which require huge volumes of steel, demonstrate why the UK must have a strong and vibrant steel manufacturing sector. As Britain’s only manufacturer of heavy construction steel sections and rail, we have a critical role to play in helping this country meet its many infrastructure needs and look forward to working with Heathrow, other customers and the UK government, to support investments that grow the British economy. Our colleagues in Scunthorpe and Teesside have a distinguished history of supplying world-class products into projects like Heathrow’s expansion, and we are incredibly excited by the potential of today’s (Feb 12) announcement and the signing of the UK Steel Charter.”

In related news, Lufthansa recently re-opened its updated passenger lounge at London Heathrow Airport. Located in Terminal 2, South Level, Level 5, the Senator and Business Lounge, which has been closed for renovations since October 2024, will now offer passengers an elevated travel experience. Click here to read the full story.

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