IAG Challenges Heathrow’s Third Runway Costs in Transport Committee Evidence

International Airlines Group (IAG), the parent company of British Airways, has expressed serious reservations about the financial viability of Heathrow Airport’s proposed third runway. In written evidence submitted to the UK government’s Transport Committee, IAG described the $66 billion (£49 billion) estimated cost as 'exceptional' and warned that it could jeopardize the project’s success. ## Cost Concerns and Comparisons IAG, which also owns Iberia and Aer Lingus, argued that the proposed expenditure 'far exceeds' the costs of similar expansion projects at major European hubs, including Amsterdam Schiphol, Paris Charles de Gaulle, Frankfurt, and Istanbul. The airline group questioned whether the plan offers value for money or a reliable basis for decision-making, citing independent analysis that suggests Heathrow’s cost evidence is 'selective, inconsistent, and not robust enough' to justify such a significant national investment. The Transport Committee is currently reviewing the draft Heathrow Expansion National Policy Statement (HENPS), released by the Department for Transport in June 2026. As part of its inquiry, the committee has gathered over 70 pieces of written evidence from stakeholders, including airlines, organizations, and individuals. Oral hearings are set to begin in September 2026. ## Affordability as a Critical Factor IAG emphasized that affordability is essential for the expansion’s success, warning that without it, the project could fail to deliver promised benefits such as improved connectivity, job creation, and trade opportunities. The company stated that the HENPS, in its current form, does not meet the necessary criteria for affordability and deliverability. While acknowledging that increased capacity at Heathrow could enhance the UK’s global connectivity and support economic growth, IAG argued that there is no credible guarantee that the costs will be manageable for consumers, airlines, or the broader economy. The airline group stressed that affordability must be a binding requirement, not just an aspiration, and should be rigorously tested and enforced throughout the project’s lifecycle. ## Calls for Stronger Cost Controls IAG is urging the committee to implement affordability guarantees, a binding budget ceiling, protections against rising passenger charges, and stronger mechanisms to control costs. The company’s submission highlights the need for a balanced approach that ensures the expansion delivers genuine public benefit without imposing an unsustainable financial burden on passengers and airlines. The Transport Committee’s inquiry will continue to examine the economic and operational implications of Heathrow’s third runway, with further evidence expected in the coming months.