Regulators propose 15% cut to Dublin Airport passenger charges

Irish regulators are pushing to lower passenger charges at Dublin Airport, a move that could benefit airlines and potentially lead to cheaper airfares for consumers. The Irish Aviation Authority (IAA) proposes a 15% reduction, setting the maximum charge per passenger at €8.85 for the upcoming year.

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For airlines yes, as it will cut their costs in Dublin.

For airlines, this reduction translates to lower operating costs. Ryanair, a major carrier at Dublin, has indicated it would add two million more seats next year if the charges are cut. The airline has a history of increasing operations at Dublin when charges were discounted, such as after the COVID-19 pandemic and when the government abolished the travel tax.

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But airport operator, State company DAA, warns that the proposed reduction will hit its ability to invest for the future.

However, the airport operator, state-owned DAA, expresses concern that the proposed cut will hinder its ability to fund future investments. DAA plans to spend €5.6 billion to expand the airport's capacity to handle an additional 10 million passengers annually. The IAA's proposal is based on calculations that increased passenger numbers will spread the airport's running costs over more people, alongside expected commercial revenues.

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Airlines do not pass on the charges directly to passengers, but they are included in their costs, so they can affect fares.

The IAA's draft decision outlines a plan to keep charges below €9 through 2029. Charges could rise to between €10 and €11 if DAA proceeds with key projects, but would be cut to below €8 if development work is delayed. The IAA's final ruling, expected by year-end, will determine the airport's financial trajectory and its capacity for future expansion.

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Ryanair, already responsible for around 20 million passengers a year at Dublin, says it will add two million more seats there next year, if the authority does cut charges to €8.85.