Dublin Airport surpassed financial expectations set since 2022, according to regulatory authorities' statements
The Irish Aviation Authority (IAA) has launched a public consultation to determine the new maximum charge that airlines will pay to operate at Dublin Airport. This decision, which will be made independently by the IAA, will set the charges for the next four years, starting from January 1st, 2027.
Previously, the Commission for Aviation Regulation was responsible for setting these charges. However, the IAA now holds this responsibility independently, following a change in its remit.
The IAA's decision will be informed by a public consultation, which is currently ongoing. The consultation aims to gather insights from various stakeholders, including airlines, passengers, and industry experts.
In 2023, Dublin Airport saw 33.5 million passengers, exceeding the IAA's forecast of 31.7 million. The following year, the number of passengers increased to 34.6 million, again surpassing the IAA's forecast of 33.6 million.
The IAA's capital expenditure forecast for Dublin Airport in 2022 was also exceeded due to delays in certain projects in the planning process. These delays were part of the airport's infrastructure application and included capacity-enhancing and passenger experience-related projects.
Despite these delays, Dublin Airport has managed to outperform financial expectations since 2022, primarily due to stronger-than-expected passenger growth.
The IAA will consider different methodologies and data sources for forecasting future traffic before making the 2026 decision on airport charges. The authority's key objective for the new maximum airport charge decision is to promote and protect the interests of current and future airport users.
It's worth noting that Dublin Airport is State-owned by DAA, and the IAA is responsible for its operation. The IAA's decision on the new maximum airport charge will directly impact the costs that airlines will have to pay to operate at Dublin Airport.
The IAA's decision, which is due next year, will mark the first time the authority has made this decision independently, following the merger of the Commission for Aviation Regulation into the IAA in 2023.
[1] Source: Irish Aviation Authority press release, 2023.
The IAA's decision on the new maximum airport charge will directly affect the costs that airlines, operating within the transportation sector, will have to pay in Dublin Airport. This decision, which considers inputs from various stakeholders such as airlines, passengers, and industry experts, will also influence the finance sector, as it may impact the overall operational expenses of airlines in the industry. The IAA will utilize different methodologies and data sources to forecast future traffic in both the aerospace and transportation sectors before finalizing the airport charges, with a key objective to promote and protect the interests of current and future airport users.
