Heathrow to raze closed Terminal 1 and expand Terminal 2 in £10bn overhaul to boost capacity

Heathrow Airport will finally demolish its long-abandoned Terminal 1, ten years after it closed its doors to passengers. In a statement released this week, airport officials confirmed the long-anticipated plan to replace Terminal 1 with a much larger Terminal 2, forming part of a £10 billion investment aimed at transforming the UK’s busiest airport.

The expansion will enable Heathrow to handle an additional 10 million passengers per year—a 12% boost in overall capacity. The proposal also includes a new southern tunnel for improved internal access and a 20% uplift in freight handling to support growing cargo demand.

Terminal 1, which first opened in 1969, once held the title of largest new terminal in Western Europe. It served millions until June 2015, when it was shut down to make way for Terminal 2’s expansion. Yet, for a decade, the building has sat largely unused, a concrete relic of aviation history waiting for the wrecking ball.

The decision to finally move forward signals renewed momentum for Heathrow’s modernisation, though the plans must still clear regulatory approval and obtain planning permission before demolition and construction work can commence.

Terminal 2 itself has a curious legacy. It predates Terminal 1, originally opening in 1955 under the name Europa Building, before being renamed with the launch of Terminal 1. The current Terminal 2 was rebuilt between 2009 and 2014, and now this latest phase of expansion will see it completely absorb the footprint of the old Terminal 1.

“This is a crucial step in future-proofing Heathrow,” an airport spokesperson said. “We’re investing in smart infrastructure that allows us to grow sustainably and meet the evolving needs of our passengers and cargo partners.”

Alongside the demolition, Heathrow plans to build a new southern tunnel, aimed at improving access to the terminal complex from the central area. This is expected to ease congestion and support smoother internal logistics—especially important with higher passenger and freight volumes projected.

Interestingly, Heathrow’s terminal numbering remains something of an aviation oddity. Once Terminal 1 disappears, the airport will officially be left with Terminals 2 to 5, skipping the numeral altogether. There has been speculation about a terminal renumbering, but no formal plans have been announced.

Crucially, this expansion is not tied to the controversial third runway project, which remains in limbo. That development—if it proceeds—would see a further passenger hub built near an expanded Terminal 5. Instead, the Terminal 2 plans aim to maximise existing infrastructure while delivering capacity gains in the short to medium term.

The project is being pitched to the Civil Aviation Authority (CAA) for approval, with detailed designs to follow. Once approved, the airport will begin submitting planning applications. Officials have not yet committed to a construction timeline, but insiders suggest demolition could begin within two years if regulatory processes move swiftly.

The move signals Heathrow’s readiness to evolve after a turbulent period shaped by pandemic disruptions, climate pressures, and fierce debates over airport expansion. With passenger numbers rebounding and international travel surging, the airport is seeking to stay ahead of growing demand.

For now, the announcement marks the end of the road for Terminal 1, once the pride of British aviation, now preparing for demolition as Heathrow turns its gaze toward the future.