BAA has made huge profits over the last couple of years while airlines have been struggling financially

Paul Moore, Virgin Atlantic

The Civil Aviation Authority (CAA) is set to announce above-inflation increases at Heathrow, Gatwick and Stansted - the three London airports operated by BAA.

This will mean charges to airlines rising by about 40% over the next five years.

"You can't escape the fact that our costs will be going up and that has to be reflected in fares," said Paul Moore, a spokesman for Virgin Atlantic.

'Airlines will get nothing'

For the past five years the annual increase in airport charges has been set below the rate of inflation at Heathrow and Gatwick, and at 1% above inflation at Stansted.

Our charges are far lower than nearly all those at other international airports

Airports operator BAA

But the CAA has recommended that, for the next five years, airports operator BAA should be able to charge between 5% and 6% above inflation.

It said the increase was needed to pay for investment and would mean real increases of �2 per passenger at Heathrow, �1 at Gatwick and �1.70 at Stansted.

But Mr Moore said: "BAA has made huge profits over the last couple of years while airlines have been struggling financially.

"BAA has got more than enough money for its investment programme.

"The airlines will get nothing out of this formula deal except that our costs will go up."

No to new airport

A spokeswoman for BAA said: "We plan to invest �8.1bn into the three airports over the next few years and airlines have said they are keen to see these improvements.

"Our charges are far lower than nearly all those at other international airports."

The CAA announced its proposed charges in March.

Its recommendations have been scrutinised by the Competition Commission, but even if the Commission disagrees with the higher charges, the CAA will be able to impose them if it sees fit.

It will announce the new charges in a statement to the London Stock Exchange on Friday morning.

On Thursday the travel industry refused to back plans to build a new four-runway airport at Cliffe on the Thames Estuary in Kent.

The Association of British Travel Agents said the Cliffe option was too expensive and environmentally damaging.