Heathrow has been refused permission for a "disproportionate" plan to raise airline and passenger charges to recover £2.6 billion lost during the pandemic.
The airport had applied to the CAA to increase its fees. However, the authority has granted permission for it to raise just £300 million through higher passenger and airline charges.
CAA director Paul Smith said: “We have taken the decision that an early intervention on the scale of its request is disproportionate and not in the interests of consumers.”
The CAA said it would consider a new request as part of the next round of price controls next year.