Ryanair says passengers face 40% hike in travel costs with rise in Dublin Airport charges

Ryanair CEO Eddie Wilson said: 'Rewarding Dublin Airport with 20%-40% price increases, at a time when it is one of Europe’s worst performing airports, is a sign of regulatory failure and capture'.

Ryanair has warned that passengers could face hikes in air travel of between 30-40% in the next four years, as it condemned a draft decision from the aviation regulator to allow airport charges to increase at Dublin Airport.

The Commission for Aviation Regulation (CAR) said on Friday that the price cap on charges at the airport should change from €8.24 in 2022 to as high as €9.81 by 2026 should Dublin Airport deliver on its capital investment programme as planned. 

However, the price cap will also adjust with inflation which is currently at its highest level in Ireland for 40 years. Dublin Airport had proposed an even higher price, in the range of €13.04 to €14.77.

The CAR said that it had reviewed price caps in the wake of Covid-19 and the “devastating impact” it had on the aviation industry. It said that through airport charges it has to balance efficiency with the delivery of high-quality services and infrastructure for airlines and passengers.

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Over the next four years, it said the proposed price cap would allow Dublin Airport to collect €1.2 billion from airport charges and a further €1.15 billion from commercial revenues.

The deputy commissioner, David Hodnett, said: “Like many other airports and aviation stakeholders, the faster-than-expected recovery in traffic has posed a significant operational challenge to Dublin Airport.

“This review covers the period 2023-2026 and we expect the service level to be at pre-pandemic levels throughout. This is reflected in our proposed service quality targets.” 

Ryanair, however, was scathing in its response, and said it would reward Dublin Airport for “mismanaging the customer experience this summer, with long security queues, missed flights, and record flight delays”.

Its CEO Eddie Wilson said: “Today’s draft decision by CAR is a bad day for Dublin Airlines and passengers.

Rewarding Dublin Airport with 20%-40% price increases, at a time when it is one of Europe’s worst performing airports, is a sign of regulatory failure and capture.”

The CAR has invited comments on its draft decision, setting a deadline of September 16 for responses, before it makes its final decision.

In a statement given to the Irish Examiner, the daa said: "daa notes today’s draft decision on Dublin Airport passenger charges by the Commission for Aviation Regulation (CAR).

"It is vital that passenger charges are set at a level which will allow Dublin Airport to meet the challenge of recovering from the COVID pandemic and to deliver the high-quality service that passengers both expect and deserve. 

"While any change in passenger charges has virtually no discernible impact on the price of a flight, it can have a material effect on the standard of service and the level of capacity that the airport is able to provide," the statement reads.

"daa will take time to review CAR’s draft determination report in detail and will respond to the consultation process. CAR’s final decision will serve as one of a number of data points that daa will use to evaluate and determine its operational and investment plans for the years ahead."