Dublin Airport operator DAA has warned that the charges airlines pay to fly in and out of the aviation hub are unsustainably low and will have to rise if it is to deliver the standard of service expected of a significant European airport.
On Wednesday, the State company, which also operates Cork Airport, reported unaudited half-year results showing a 4 per cent rise in passenger numbers at the two hubs.
Passenger volumes rose to 18.6 million in the six months to the end of June, up from 17.9 million in the same period in 2024.
DAA said group revenues rose 6 per cent to €536.1 million over the period.
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However, operating costs surged by more than 10 per cent to €375.3 million, contributing to a 5 per cent decline in pretax profits to €77.8 million over the period.
In a statement, DAA chief financial officer Peter Dunne said the group had increased operating expenditure to “enhance service through a longer and more sustained summer peak”.
But he added that the group faced “sustained cost pressures, from energy and regulatory compliance to construction and wage inflation”.
Mr Dunne said the fees DAA charges airlines to operate from Dublin Airport are “among the lowest of major European airports”.
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This is “increasingly unsustainable given these pressures and the significant operational and capital investment needed to deliver the standard expected of Ireland’s national gateway and maintain quality across Dublin and Cork”.
In July, the Irish Aviation Authority (IAA) opened a public consultation that will inform its decision on the new maximum charge that airlines will have to pay to operate at Dublin Airport. It comes in advance of the watchdog’s decision, due next year, on the new maximum level of airport charges for the following four years, beginning on January 1st, 2027.
Mr Dunne said “a fair price outcome” from that process “will be critical to protecting service, resilience and connectivity for passengers and the wider economy”.
Ryanair, in particular, has taken aim at the charges in recent years. In May last year, the IAA ruled in favour of the airline, which had lodged a complaint against DAA relating to its charges for the winter 2024 season.
Meanwhile, DAA chief executive Kenny Jacobs, who will depart the State company after reaching an exit agreement with the board last week, said he was “very pleased” that Minister for Transport is bringing forward legislation to remove the passenger cap at Dublin Airport.
He said the cap has “held back growth and created uncertainty that we, the airlines and the economy don’t need”.
The Irish Times reported last week that Mr Jacobs will leave the airport operator by mutual agreement with an exit package of close to €1 million, pending political sign-off, after a serious rift developed between the chief executive and the board.
