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City AM

As it happened: Stocks mixed as Trump warns takes ‘two to tango’ on Iran peace As it happened: Stocks mixed as Trump warns takes ‘two to tango’ on Iran peace Replace Reeves if Starmer goes, voters tell Labour Right to Buy has been a huge success, of course the left hates it Regional bond revolution risks making Britain more unequal and less prudent Labour may not agree with Blair, but the public does… The world can’t keep consuming more than it produces If performance matters more than privilege then prove it Wayve: London robotaxis will make passengers forget there’s no driver Mandelson Files add insult to injury, but the patient was already beyond saving Blackstone Raises its Largest Asia Private Equity Fund at $13.1 Billion Pension master trusts join forces to tackle outdated transfer systems Iran ‘pulls out of talks with US’ and threatens to strike Israel Anthropic files for IPO as race with OpenAI heats up ‘Be more Trumpian’ – Mandelson discussed dire economy and ‘lack of verve’ with key Starmer ally Deloitte UK appoints first chief AI officer in drive for ‘AI-enabled’ services Private credit is crowded — but disciplined capital still knows where to look Squash players turn to social media to cash in on LA Olympic Games opportunities Interactive Brokers Integrates AI into Client Portfolios – Informed by Agentic Technology, Controlled by the Client WWEX Group and Auctane Complete Merger, Creating Leading Logistics Provider ShipStation Global Sadiq Khan: London tech boom can weather ‘dizzying’ AI risks New mixed gender trophy introduced for coming Hundred season Labour voters lead AI adoption as public remains split on impact North Highland Names Anthony Shaw Global Chief Executive Officer Vyond Appoints SaaS Industry Veteran Scott Ernst as Chief Executive Officer Winston Taylor Completes Historic Transatlantic Combination M&S chief’s pay slashed by £3m after cyberattack turmoil Inside Celonis, the German tech unicorn that won over a fifth of the FTSE 100 Stop and think before asking for a bigger salary Brits back Blair’s growth calls – yet are squeamish over welfare cuts Number of claims management firms halves after FCA clampdown Richard Desmond hit with £40m bill over ‘fanciful’ lottery feud Pub bosses warn tax hikes driving youth unemployment crisis UK manufacturing survives Iran war impact Labour sheds union member support to Reform, poll shows Private equity-backed Ryan triumphs in bidding for European tax adviser Svalner Atlas Wise shares plummet as money transfer firm faces fraud investigation KBRA Releases Research – European Fibre ABS: From Build-out to Securitisation Everbridge Expands Presence in Germany with New Munich Office Iran war triggers slump in selfies, ME Group warns Landlords rush to protect income over Renters’ Rights Act fears Ascensia Diabetes Care Expands CONTOUR® Portfolio with CONTOUR®COMFORT Pen Needles to Bring Greater Stability and Control to the Everyday Injection Experience Corient Completes Acquisitions of Stonehage Fleming and Stanhope Capital Group; Global Assets Surpass US$500 Billion Autobrains and Uber to Launch Agentic AI Robotaxi Program in Munich built on NVIDIA DRIVE Hyperion Easyjet fires back at ‘highly opportunistic timing’ as Castlelake weighs takeover bid House prices fall again as property market ‘deteriorates’ Exclusive: Roland Garros star and ATP chief in £450,000 tennis fund raise Milburn NEET review: Anger crackles from the page but will Labour act? 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Flying at Heathrow will cost ‘significantly more’ due to third runway bid
Felix Armstrong · 2026-06-12 · via City AM

 |  Updated: 

Heathrow and several European airports are suffering from a cyber attack.
An aviation expert warned higher airline fees will push up prices at Heathrow

Heathrow’s bid for a third runway will “significantly” push up the cost of flying from the UK’s biggest airport, a leading aviation expert has warned.

The airport’s expansion will “inevitably” push up ticket fares because it is set to be allowed to hike the fees it charges to airports, Alton Aviation’s Ronan Murphy told City AM.

Murphy, a director at the aviation consultancy, said that flying from Heathrow “is going to cost you significantly more. That’s inevitable. […] Ultimately we’re the ones that are paying for infrastructure growth”.

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Earlier this year, the UK’s aviation regulator said that the airport would be allowed to raise airline fees to recoup the cost of its bid for a third runway.

The Civil Aviation Authority (CAA) said that Heathrow could recover up to £320m that it had spent so far on proposals for the expansion, with the regulator claiming that this would amount to less than 10p per passenger.

Higher fees ‘inevitable’

But Murphy said this decision “causes concern because the airlines will say, ‘Okay, if you’re going to charge me this and my margin is tiny anyway, I have to pass it on’. 

“Ultimately the consumer pays, so I think that’s inevitable,” he added.

Earlier this week, Heathrow hit out at the CAA for allegedly attempting to “take the UK backwards” by allowing rival firms to build its third runway and placing tighter controls on its spending.

A spokesperson for Heathrow said the third runway expansion will bring air fares down, even accounting for any hikes to airline fees.

They said: “Independent analysis is clear – expansion will drive down air fares at the UK’s hub airport through increased competition and we want to work with the CAA and Government to deliver these benefits to passengers and the economy as quickly as possible.”

But Murphy also told City AM that the travel chaos caused by a feared jet fuel shortage could be less widespread than feared.

“We’ve had the major carriers come out and say their fuel suppliers are securing supply, certainly through the summer period. So I think this risk that airlines are en-masse cancelling flights across Europe and the UK – that’s not going to happen,” he said.

European airlines ‘well protected’

In May, researchers warned that the UK was at “greatest risk” of a jet fuel shortage caused by the effective closure of the Strait of Hormuz during the Iran war.

Fears that Brits’ summer holidays could be cancelled prompted ministers to scramble to secure airlines’ access to fuel and temporarily relax “use it or lose it” rules on carriers’ slots at UK airports.

But Murphy said that European airlines are “well protected” by fixed-price contracts and access to oil reserves. 

Easyjet and British Airways owner IAG are among the carriers which have sought to play down fears of a jet fuel shortage in recent months.

Murphy said “there’s still very significant risks” around long-term fuel supplies, but said that people “don’t need to be concerned” about their summer holiday plans.

“You’re going to get down to the south of Spain, you’re going to get to France, wherever it is you’re going,” he said.