Heathrow unveils £1.3 billion investment plan for 2026

London’s Heathrow Airport today announced plans to revamp Terminal 4 next year as part of a £1.3 billion investment programme to enhance its facilities and passenger appeal.

The UK hub believes that the planned investments will boost customer satisfaction levels by ensuring that passengers enjoy smoother, more reliable journeys through the airport.

Construction will start on a revamp to Terminal 4 which will include a new multi-storey car park and upgraded check-in area. The works will be phased to ensure T4’s current operations run as normal and are expected to be completed in 2031.

Works will also begin on the new dedicated baggage system for Terminal 2, which once complete, the airport assures will enable “much more resilient and efficient services for airline customers”.

The new BHS will be capable of handling 31,000 bags per day, and should further reduce costs for airlines who will have fewer misconnected bags to reunite with passengers.

In addition, a new network of cameras is being installed across Heathrow’s stands. Using AI to analyse data captured, Heathrow is speeding up turnaround times between flights, saving airlines time and money and making passenger journeys more punctual.

Working in collaboration with airlines and ground handlers, the rollout will continue across all terminals with full coverage expected by the end of 2026.

Next year will also see Heathrow sharpen its focus on investments for passengers with accessibility needs. A new purpose-built assistance area in Terminal 2, for example, will offer direct, dedicated access to security for the first time.

Alongside new mobility equipment, Heathrow is investing in upgrades to assistance areas across the airport.

LHR. Image courtesy of OCS.

The airport will also introduce its new Tailored Travel Guide – the first of its kind for a UK airport – enabling passengers with access needs to input their travel details and receive a personalised step-by-step guide to navigate the airport and know what to expect at each stage of their 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 travelled on expected flights and 97% of security queue times were below five 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 programme 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 whilst we make Heathrow even better and more efficient for our customers.”

Today’s announcement is part of Heathrow’s current five-year investment programme (known as H7).

Separately, the UK government would also like Heathrow to expand with a third runway that is operational in a decade.

Plans for that project and for investment during the next five-year investment period from 2027-31 (H8) depend on the government and CAA putting in place the necessary policy and regulatory frameworks to deliver them successfully.