“ANA's monopoly decision to increase airport charges by up to 17% from January 2024 has harmed Portuguese growth, as Ryanair was forced to close its base in Ponta Delgada and reduce its base in Madeira by 50% in the summer 2024, with the risk of permanent closure of the base.
“These ANA monopoly fee increases are imposed at a time when most European airports are reducing fees to recover pre-Covid traffic and encourage growth. These increases in airport fees harm Portugal's growth, while at the same time only enriching the pockets of the French owner of the ANA monopoly, VINCI.
“Furthermore, Ryanair called on the Portuguese Government to immediately expand the capacity of Portela airport, before the construction of Alcochete airport, which will not be ready before 2031 at the earliest. Portela's artificial passenger cap impedes growth in Lisbon and limits low-fare competition and choice for Lisbon's citizens and visitors,” says a statement from the company
Michael O’Leary, CEO of Ryanair, said: "We call on airport monopoly ANA to take action and reduce its excessive airport charges. ANA's monopoly decision to increase charges by up to 17% is absurd when most other EU states are reducing charges to attract investment of airlines and encourage growth.
“Ryanair is the only airline to grow strongly (up to 35%) in post-Covid Europe, and we could double Portugal's air traffic to 26 million, creating hundreds of well-paid jobs in Portugal over the next 6 years. But unfortunately, without ANA action and/or Government intervention, Portugal will lose this growth to other lower-cost EU airports due to ANA's excessive fees, which are forcing airlines like Ryanair to cut back on flights. /to Portugal. Portugal's regional islands are already losing out, as Ryanair has been forced to close its base in Ponta Delgada and downsize one of our two Madeira-based aircraft, a loss of $100 million in investment, with the base currently at risk closure thanks to ANA's high fees".
This is Michael O'Leary trying to increase the value of Ryanair shares.
The lion's share of the cost of a plane ticket is imposed by Ryanair itself. Airport fees are a very small amount of what you pay - about €10-€15 in many cases.
So when you see Ryanair looking for €200+ per person keep in the back of your mind that Michael O'Leary is really talking to the shareholders about increasing the value of their shares.
By Patrick from Algarve on 24 Jul 2024, 10:25