Airlines seek reduction in air fares across Spain

The International Air Transport Association (IATA) and the Spanish Airlines Association (ALA) believe that Spanish airport taxes should decrease by 4,9% annually until 2031.

It is a move that these associations claim would increased competitiveness and preserved an investment program of almost 10 billion euros.

The Spanish state airport operator AENA (Aeropuertos Españoles y Navegación Aérea) recently proposed an annual increase in airport charges of 3,8% (excluding inflation) for the five-year period from 2027 to 2031. As a reminder, Ryanair has already cut more than a million summer seats to Spain due to rising charges.

IATA and ALA now appear to be joining Ryanair’s protest, claiming that AENA has consistently underestimated traffic growth. According to figures shared by IATA in a press release, between 2017 and 2025 (excluding the two years of the pandemic), actual passenger traffic was on average 15,3% higher than forecast, allowing AENA to earn €1,3 billion in regulated revenues. The associations say these costs have been borne by airlines and consumers.

"AENA has manipulated the regulatory system for years, earning millions of euros more than it should have, to the detriment of passengers, airlines and the Spanish economy. This must stop. AENA has generated excessive returns through a creative approach to forecasting, and its request for further increases is absurd. If approved, it would generate the highest regulated return of any comparable airport operator in Europe. This is unsustainable and unrealistic - we must see a reduction in fees", he stated Raphael Schvartzman, IATA's Regional Vice President for Europe.

IATA and ALA are therefore proposing a 4,9% reduction in fees as a way to balance rising fees. According to the associations, this would still leave room for AENA's €10 billion investment program as global consultancies Steer and CEPA have shown that passenger traffic will grow by an average of around 3,6% per year (compared to AENA's forecast of 1,3% per year). The return on capital for AENA would thus amount to 6,35%.

"Our proposal to reduce fees by 4,9% will improve Spain's competitiveness as an international destination, stimulating investment and job creation in the wider economy. At the same time, AENA can continue to afford its €10 billion investment plan and deliver reasonable returns to its shareholders. This is a win-win situation for passengers, Spain and the aviation industry. We look forward to the regulators reviewing the evidence and reaching the right conclusions.", added Schvartzman. Whether AENA will give in to the request and Ryanair's protest remains unclear for now.

/ / / Ryanair announces further capacity cuts across Europe due to air fares

Source: IATA