The UK¡¯s Competition and Markets Authority (CMA) has largely backed the proposal to force London Heathrow airport to reduce its passenger fees from next year.

The Civil Aviation Authority (CAA) told Heathrow earlier this year that it must reduce average passenger charges from the current ?31.57 per passenger to ?25.43 in 2024 and then ¡°broadly¡± stay at that level until the end of 2026.

Heathrow has appealed to the CMA by arguing that this charge was being set at too low a level by the CAA. Meanwhile three airlines - British Airways, Delta and Virgin Atlantic ¨C launched their own separate appeal in a bid to further reduce average charges at Heathrow to below ?20 per passenger.

But both the airport and the airlines are set to be disappointed after the CMA issued a preliminary statement mostly backing the CAA¡¯s decision on the charge.

¡°Overall, we provisionally consider that the CAA was not wrong in most of the decisions that were appealed to us,¡± said the CMA in a statement.

Although the CMA asked the CAA to reconsider some elements of its decision where there may have been errors, this is only like to have a ¡°small net impact¡± on the final passenger charge, which is set to be determined by 17 October.

Andrew Walker, the CAA¡¯s chief economist, said: ¡°We will now review the findings before responding in due course.?We remain confident that our decision on the charges that Heathrow Airport Limited levies on airlines represents a good deal for consumers, while allowing the airport to invest in improving services for the future.¡±

A Heathrow spokesperson said the airport was ¡°carefully considering the CMA¡¯s initial findings to understand what impact they may have on passengers and our ability to deliver our investment plans¡±.

Virgin Atlantic called the CMA¡¯s statement ¡°disappointing¡± as the CAA¡¯s proposed price cap ¡°did not go far enough to protect consumers from excessive charges at Heathrow¡±.

¡°The airport has prioritised shareholders over consumers, relying on pessimistic passenger forecasts to support its agenda, in stark contrast to the actual number of passengers flying from Heathrow which is close to pre-pandemic levels,¡± added a spokesperson for the airline.