LONDON- Best city in the world, London, will see a major infrastructure push as Heathrow Airport (LHR) confirms a £1.3 billion capital investment plan for 2026, aimed at improving passenger experience and operational resilience.
The programme targets terminal upgrades, baggage systems, digital monitoring, and accessibility, reinforcing Heathrow’s role as the UK’s primary international gateway.
The investment forms part of Heathrow’s ongoing 5 year H7 framework and is designed to support customers, airlines, and the wider UK supply chain.
Heathrow Airport expects the spending to create long-term efficiency gains while maintaining full airport operations during construction.
London Heathrow Terminal Upgrades
A central element of the 2026 plan is the full-scale redevelopment of Terminal 4, where construction will begin on a modernised check-in area and a new multi-storey car park.
Heathrow will phase the works to ensure uninterrupted terminal operations, with completion targeted for 2031.
The project focuses on improving passenger flow, reducing congestion, and strengthening landside access during peak periods. Heathrow expects the redevelopment to enhance resilience as traffic volumes continue to recover and grow.
In parallel, the airport will commence work on a dedicated baggage system for Terminal 2, designed to handle up to 31,000 bags per day.
The system aims to improve service reliability while lowering airline costs linked to misconnected baggage.
Baggage And Technology
Engineering firm Costain has been selected under the H7 Framework Alliance to deliver the Terminal 2 baggage infrastructure.
Having completed the design phase in 2025, Costain will now lead a 3 year construction programme focused on state-of-the-art baggage handling systems.
The new system will improve operational efficiency for airlines and reduce passenger disruption caused by delayed or mishandled luggage. Heathrow views the project as a critical investment in operational robustness across its core terminals.
Heathrow is also rolling out an AI-enabled camera network across aircraft stands to improve aircraft turnaround times.
The system analyses real-time data to support airlines and ground handlers, with full airport-wide coverage expected by the end of 2026.
Bottom Line
Accessibility improvements form another pillar of the 2026 investment, with a new purpose-built assistance area planned for Terminal 2.
The facility will offer direct access to security screening for passengers requiring support, supported by upgraded mobility equipment across the airport.
Heathrow will also introduce a Tailored Travel Guide, allowing passengers with accessibility needs to receive personalised journey guidance before arrival.
Heathrow CEO Thomas Woldbye said the programme will make the airport more efficient, user-friendly, and resilient.
While the investment sits within the existing H7 framework, Heathrow confirmed that future expansion plans, including a potential third runway, depend on government and regulatory approvals under the next H8 period.
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