VIRGIN Airlines and British Airways' owner IAG have slammed the Civil Aviation Authority's (CAA) decision today to hike Heathrow's price cap.

The regulator announced the hike yesterday morning, raising the cap for 2023 to £31.57 per passenger, up from £30.19.

The aviation watchdog said the decision will "give certainty to the airport and airlines."

The hike in the price cap - the amount Heathrow charges airlines per passenger - is well below what the airport was calling for, however, previously asking for it to be raised to as much as £41.95 per passenger for the period up to 2027.

But the cap, which is calculated based on passenger numbers, has generated huge controversy, with airline bosses accusing the west London hub of downplaying its postpandemic recovery to get a more favourable price cap hike.

A spokesperson for British Airways' owner IAG told City A.M. it was disappointing the CAA hadn't taken into account "the reality of higher traffic volumes, which ought to result in lower prices."

(c) 2023 City A.M., source Newspaper