UK Chancellor of the Exchequer John Healey has publicly backed plans for a third runway at Heathrow Airport, exposing a cabinet divide with Prime Minister Andy Burnham. Speaking to reporters at the International Monetary Fund's annual meetings in Bangkok, Healey said 'the case for a third runway at Heathrow has always been a case for growth' [Source: Bloomberg], adding that airports have been 'a big part of jobs and growth' in recent decades. Healey noted that the formal position remains that the government-led consultation, conducted by the transport department, is closed and that responses are under review, with further announcements to follow.

The remarks stand in direct contrast to Burnham's stance. Three weeks before Healey's comments, the Prime Minister declined to support the runway, saying the decision was a matter for people who live near the airport. Burnham has also refused to say publicly whether he backs Heathrow expansion. His position has roots in his tenure as mayor of Manchester, during which he opposed the project on the grounds that it would delay investment in transport infrastructure for the North of England.

The project's costs and timeline remain contested. Heathrow has said a third runway may not open until 2039, four years later than initially forecast. The airport expects the runway itself to cost £21 billion, with a further £12 billion required for associated infrastructure including new satellite terminals. International Airlines Group (IAG.L), the owner of British Airways and Heathrow's largest airline customer, has said it supports the commitment to growth represented by backing for a third runway 'but the cost must be far lower to ensure that Heathrow remains globally competitive' [Source: Travel Weekly]. IAG chief executive Luis Gallego has urged the government to consider taking an ownership stake in Heathrow to make the planned expansion more affordable. IAG, alongside Virgin Atlantic and IATA, has publicly endorsed the Arora Group's revised 'Heathrow West' proposal — submitted to the UK government in May — as a cheaper, faster alternative to the incumbent plan.

Heathrow's current investors include Ardian, the Qatar Investment Authority, Saudi Arabia's Public Investment Fund, Singapore's GIC, Australian Retirement Trust and China Investment Corporation. The airport has been in private ownership since 1987. The political debate over adding a third runway at the busiest airport in Europe has divided British politicians for decades. Under Burnham's predecessor Keir Starmer, the government sought to settle the matter in 2025 by stating that expansion should go ahead, and Healey's predecessor as chancellor, Rachel Reeves, placed approval of the runway at the heart of her growth agenda, saying it would 'make Britain the world's best-connected place to do business' [Source: The Guardian]. The Transport Committee published more than 70 pieces of written evidence in August 2026 as part of its inquiry into the government's third runway plans, scrutinising a draft Heathrow Expansion National Policy Statement published by the Department for Transport in June 2026. No specific equity price moves in IAG.L were reported in connection with Healey's Bangkok remarks.

Sources: Bloomberg, Reuters, The Guardian, BBC News, Travel Weekly, Travelling For Business, The Aviation Hub, AeroTime, Yahoo News