Heathrow Airport has confirmed plans to invest £1.3bn (US$1.7bn) during 2026, following a year of record passenger growth and improved operational performance. The investment is part of the airport’s current five-year H7 regulatory program to upgrade terminal facilities, baggage systems and passenger services.
Key projects scheduled to begin next year include a major refurbishment of Terminal 4, construction of a new baggage system for Terminal 2 and further improvements for passengers with accessibility needs.
Work on Terminal 4 will include the construction of a new multistory car park and an upgraded check-in area. The redevelopment will be delivered in phases to ensure the terminal continues to operate normally, with completion expected by 2031.
At Terminal 2, construction will start on a dedicated baggage system designed to improve resilience and efficiency for airline operations. Once completed, the system will be capable of handling up to 31,000 bags per day. Heathrow says the project will also help reduce costs for airlines by cutting the number of misconnected bags.
Operational improvements are also continuing across the airfield. A new network of cameras is being installed at aircraft stands, using artificial intelligence to analyze turnaround activity between flights. The system is intended to help reduce turnaround times, improve punctuality and lower costs for airlines. Heathrow is rolling out the technology in collaboration with airlines and ground handlers, with full coverage across all terminals expected by the end of 2026.
Accessibility remains a focus of the 2026 investment program. Heathrow plans to open a new purpose-built assistance area in Terminal 2, providing direct access to security for passengers requiring support. The airport is also investing in new mobility equipment and upgrading assistance areas across its terminals.
In addition, Heathrow will introduce a new tailored travel guide, a personalized, step-by-step guide outlining what to expect throughout the passenger’s journey.
Heathrow CEO Thomas Woldbye said, “Passengers should expect that every time they travel through Heathrow their journey is better than the last. Last December, we said we’d invest in operational performance and this year we’re the most punctual hub in Europe, almost 99% of bags traveled on expected flights and 97% of security queue times were below 5 minutes, and in January, all passengers in all four terminals will benefit from going through new next-generation security.
“I’m excited to unveil next year’s program which will make Heathrow more user-friendly, more efficient and more resilient for our customers. This investment will flow directly into our nationwide supply chain helping to drive economic growth while we make Heathrow even better and more efficient for our customers.”
The announcement relates to Heathrow’s current five-year investment period known as H7. Plans for expansion, including a potential third runway and investment beyond 2027 under the proposed H8 program, remain dependent on future government policy decisions and regulatory approval from the Civil Aviation Authority.
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