Heathrow is planning to spend £1.3bn during 2026 in a boost to customers and the airport’s UK-wide supply chain

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. Once complete, this will enable much more resilient and efficient services for airline customers, capable of handling 31,000 bags per day. It will also further reduce costs for airlines who will have fewer misconnected bags to reunite with passengers.

Costain has been selected, as part of an alliance, to deliver infrastructure to support the new baggage system at Heathrow T2.

It completed the design phase of the upgrade of the baggage handling facilities and systems in 2025 and has now been chosen to deliver the construction and build phase of the project. The three-year contract was awarded to Costain under the H7 Framework Alliance, through which Costain is working with Heathrow and its partners to deliver asset renewals and construction projects to enhance the airport’s operations and customer experience.

Costain will bring its expertise in complex engineering in highly regulated environments, alliance partnerships and supply chain collaboration to build and upgrade the baggage facilities and systems, which will ensure the baggage operations of Terminal 2 are state-of-the-art.

Heathrow has also announced a new network of cameras is being installed across its 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.

Heathrow is continuing to improve access for all passengers and 2026 will see focussed investment for passengers with accessibility needs. A new purpose-built assistance area in Terminal 2 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. 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 the 2026 programme will make Heathrow “more user-friendly, more efficient and more resilient for our customers”.

The announcement is part of Heathrow’s current five-year investment programme (known as H7). Separately, the 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.