Passenger hopes of a return to cheaper Heathrow flights look to have been dashed after regulators confirmed airline charges will remain fixed until the end of the year.

The decision has left both the airport and airlines unhappy. Heathrow Airport are arguing that the charges, set by the Civil Aviation Authority, needed to rise in order to cover increased costs of baggage handling and security, while the airlines wanted lower costs.

However in 2023, the prices that airlines are charged will fall by 20 per cent – from £31.57 per passenger to £23.43. However this means they will be largely unchanged from 2020 levels – where were subsequently hiked for a period due to the fallout from the pandemic.

The decision was confirmed by the Competition and Markets Authority on Tuesday, October 17, after being asked to intervene by Heathrow Airport and three airlines – British Airways, Delta Air Lines, and Virgin Atlantic Airways.

Kirstin Baker, CMA group chair, said: "Having considered these appeals, we found that the CAA's Heathrow price control struck broadly the right balance between ensuring prices for passengers are not too high and encouraging investors to maintain and improve the airport over time."

Heathrow Airport limited had requested a higher average charge over the price control period of about £40 per passenger, the airlines suggested it should be no more than around £18.50 on average.

Heathrow said its appeal was based on the CAA not allowing it to earn sufficient revenue to support investment, after the difficulties of the COVID-19 period. 

The airlines argued the opposite, saying the airport charges were already too high.

Both argued over the course of their appeals, that the final decision was "not in the interests of consumers".

A Heathrow spokesperson said: "We're naturally disappointed, but it's time to move on.

"We will do our best to deliver the outcomes that passengers told us they wanted within this tight framework.

"Going forward, the CAA needs to take more account of the views of consumers so that the settlement delivers the Heathrow experience passengers are looking for and not just higher profits for airlines."

British Airways' boss Luis Gallego, said: "Heathrow's charges remain among the highest in the world and are not competitive. 

"We would like to work with the CAA to improve the regulatory framework for the future."

The CMA is the appeal body and its role is not to re-take the CAA's decisions, but to decide whether the regulator made specific errors in its evaluation.