Gatwick Airport second runway decision expected

Published On Feb 26, 2025, 7:00 PM

Gatwick Airport is awaiting a decision on its plan to expand to a second operational runway to accommodate more flights, potentially adding 50,000 departures per year by the end of the 2030s and creating 14,000 jobs. The expansion would involve moving the existing northern runway and is backed by £2.2 billion in private investment. However, significant opposition exists from local authorities and residents concerned about noise, air quality, and climate impacts. The UK climate change committee has also raised concerns about the aviation sector's carbon emissions and growth demands.

Stock Forecasts

IAG

Positive

Should the runway expansion be approved, Gatwick Airport is likely to increase its operational capacity significantly, improving profitability and market position within the aviation sector. However, environmental concerns and community opposition may hinder operational efficiencies and long-term plans.

RYAAY

Neutral

Airlines benefitting from increased flights and routes could see speculative growth; nonetheless, regulatory hurdles and public sentiment might pose risks. If the expansion doesn't proceed, existing capacity constraints could affect airline stock performance.

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