Heathrow Airport will spend £1.3bn in 2026, improving Terminal 4, Terminal 2 baggage systems, accessibility, AI operations, and overall passenger experience across the airport.
London Heathrow Airport (LHR) plans to invest £1.3bn in 2026, boosting services for passengers and supporting the airport’s UK-wide supply chain. The investment will kickstart a revamp of Terminal 4, begin construction of a new baggage system for Terminal 2, and improve facilities for passengers with accessibility needs as part of Heathrow’s strategy to become an extraordinary airport fit for the future.
Construction on Terminal 4 will include a new multi-storey car park and upgraded check-in area. Works will be phased to maintain normal operations and are expected to be completed by 2031. In Terminal 2, a dedicated baggage system capable of handling 31,000 bags per day will improve efficiency, reduce misconnected luggage, and lower costs for airlines.
Heathrow is also installing a network of cameras across its stands. Using AI to analyse data, the system will speed up turnaround times, saving airlines time and improving punctuality. Rollout across all terminals will be completed by the end of 2026 in collaboration with airlines and ground handlers.
Investment in accessibility will see a new purpose-built assistance area in Terminal 2 offering direct security access. New mobility equipment and upgraded assistance areas will be introduced across the airport. Passengers can also use the Tailored Travel Guide, the first of its kind for a UK airport, to receive a personalised step-by-step guide for 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 5 minutes. I’m excited to unveil next year’s programme which will make Heathrow more user-friendly, more efficient and more resilient for our customers.”
The announcement forms part of Heathrow’s five-year H7 investment programme. Future expansion plans, including a third runway and the H8 investment period from 2027-31, depend on Government and CAA policy and regulatory frameworks.
