$1.7 billion Heathrow Airport upgrade plans unveiled, changes to Terminals 2 & 4

Plans have been unveiled for a $1.7 billion upgrade of London-Heathrow Airport (LHR) to be undertaken next year that includes changes to both Terminal 4 and Terminal 2.

The plans are part of Heathrow’s current five-year investment program, which the airport hopes will lead to smoother, more reliable journeys for its customers.

This significant investment, announced on December 19, 2025, will begin with a revamp to Terminal 4 which will include a new multi-story car park and upgraded check-in area.

The works will be phased to ensure the terminal’s current operations run as normal and are expected to be completed in 2031.

Works will also begin on a new dedicated baggage system for Terminal 2. Once upgraded, it will be capable of handling 31,000 bags per day.

Eric0892 / Creative CommonsIn addition, a new network of cameras is being installed across Heathrow’s stands in Terminal 2 that use AI to analyze captured data, intended to help speed up turnaround times between flights.

Working in collaboration with airlines and ground handlers, the rollout will continue across all terminals with full coverage expected by the end of 2026.

In a push to make the airport more accessible to 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 enter their travel details and receive a personalized step-by-step guide to navigate the airport.

“Passengers should expect that every time they travel through Heathrow their journey is better than the last,” said Heathrow CEO Thomas Woldbye. “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, and in January, all passengers in all four terminals will benefit from going through new next generation security.”

He added: “I’m excited to unveil next year’s programme which will make Heathrow more user-friendly, more efficient and more resilient for our customers. This investment will flow directly into our nationwide supply chain helping to drive economic growth whilst we make Heathrow even better and more efficient for our customers.”

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