Manchester Airport Faces Price Increases Amid Major Transformation

Business Rates Surge to Impact 2026 Airfares

Manchester Airport has issued a caution to holidaymakers for 2026, stating that air fares will ‘inevitably’ rise due to increases in property tax. Manchester Airport is among the worst hit, with its business rates bill predicted to surge by £4.2 million to £18.1 million next year, according to data from Ryan’s. This significant increase stems from a comprehensive overhaul of property valuations affecting regional airports across the UK.

Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, informed PA: “With an unprecedented 295 per cent sector-wide uplift, regional airports simply cannot absorb a cost shock of this magnitude. These increases will inevitably flow through the system: first into airport charges, then into airline costs, and ultimately into ticket prices.” The warning comes as air travellers are being alerted to prepare for fare hikes as regional airports across the UK face “unprecedented” rises in property tax next year.

£1.3 Billion Transformation Programme Nears Completion

Despite the financial pressures, Manchester Airport continues to invest heavily in infrastructure improvements. The airport comprises a cargo terminal and three passenger terminals – although a £1.3 billion redevelopment programme will merge Terminals 1 and 3 in 2025. The new, upgraded terminal will open fully later in 2025.

The 10 year, £1.3bn project to completely transform Terminal 2 is nearly finished and passengers who have already used it absolutely love it. The first phase of the project started with the opening of the west side of the brand-new Terminal 2 – which has already won a prestigious design award, the Prix Versailles, which recognised it as one of the most beautiful airport buildings in the world. Work is now underway on Terminal 3, which will feature expanded facilities including a 40% increase in seating, new security equipment, and enhanced dining and retail options.

Impact on Investment and Passenger Growth

The substantial tax increases may affect the airport’s ambitious growth plans. A spokesperson for Manchester Airports Group stated: “Airports were already some of the highest rates-payers in the country and were prepared to pay significantly more. But increases of more than 100 per cent mean we have to look again at our plans to invest more than £2 billion in our airports across the UK over the next five years.

In 2024, it was the third-busiest airport in the United Kingdom in terms of passengers (the busiest outside London), and the 19th-busiest airport in Europe in 2024, with 30.9 million passengers served. The airport continues to expand its route network, with digital transformation initiatives including The Manchester DAMS system is due to go live in 2026.

Implications for Travellers and Regional Connectivity

The business rates increase raises concerns beyond ticket prices. The organisation described the plans as “short-sighted” and warned they will “have a knock-on effect for the businesses that depend on airport connectivity in all areas of England”. This threatens to “negatively impact local economies that depend on the supply chains, tourists and connections their airports provide”, according to the organisation. For passengers planning travel through Manchester Airport in 2026, the combination of rising fares and improved facilities presents a mixed outlook, with enhanced experiences potentially offset by higher costs.