The boss of low-cost airline Ryanair has warned that a passenger cap being imposed on the group could drive up airfares next summer.
Michael O'Leary, Ryanair's chief executive, said on Friday that a reduction of up to one million passengers may be required to ensure that the 32 million per year ceiling at Dublin airport is not breached in 2025, which could subsequently lead to higher fares.
In a statement, the airline also called on the Irish government to help.
"Over the past two weeks, the airlines at Dublin airport have been warned they will not receive extra slots for Christmas flights this winter or sporting events such as Rugby Internationals and Premier League matches.
"Now the Ireland Aviation Authority (IAA) has suggested that in order to comply with the 32 million traffic cap, summer 2025 traffic at Dublin must be reduced by up to one million passengers. Any such reductions will damage Irish tourism and jobs, and will lead to much higher fares for passengers and Irish families going on holidays in 2025," a Ryanair statement on the company's website said.
Ryanair also highlighted that the 17-year-old traffic cap should no longer apply because it was introduced in 2007 to address then concerns that road traffic to and from Dublin airport would exceed road capacity when Dublin reached 32 million passengers.
"Since the circumstances have changed, and there is no threat to road traffic, the Irish government should now act to scrap this unnecessary but deeply damaging 2007 traffic cap," the statement also highlighted.
Michael O’Leary said Dublin airport also recently opened a second runway, taking its capacity up to 60 million passengers per year.
"Yet our Transport Minister refuses to act to scrap this outdated traffic cap to let Dublin Airport grow. Since the Transport Minister won’t act, we now call on the wider government, led by Simon Harris, to take urgent action to scrap the cap to allow Irish tourism and jobs to grow in 2025.
"It is vital that Dublin Airport traffic is allowed to grow so that we can keep airfares low for Irish families going on holidays in 2025," O’Leary said.
Christmas Flight Price Hike
Fare increases could continue into next summer if the cap at Dublin Airport does not change and allow for a higher volume of planes to arrive and depart from the location, he added.
Speaking to RTÉ Radio One this morning, the Ryanair boss said a number of times that he believed Transport Minister Eamon Ryan was “incompetent” and called for Taoiseach Simon Harris to intervene to make the change.
The change he, the airport operators DAA and a number of other stakeholders are looking for is an increase to the 32 million passenger cap at the location or for it to be totally scrapped. There is hesitancy to do so over emissions concerns.
Fingal County Council are in charge of planning permission for the cap, but the Government can step in on occasion.
The DAA has previously said that it is considering an application for Dublin Airport to be recognised as strategic infrastructure, in order to bypass planning permission procedures from Fingal.
Recently, Ryanair and Aer Lingus also recieved permission from the High Court to challenge the passenger cap.
Dublin Airport has been operating at capacity for some time and, as a result, airlines are not guaranteed that the ‘slots’ – or flight times. Airlines apply for these slots and Dublin Airport award them accordingly.
Some airlines argue that the cap is impacting their businesses as a result, as the airport cannot award every slot that is applied for.
DAA management have previously said that the delay in JetBlue, an American airliner, entering the Irish market was because there were not enough slots left to make operations profitable in Dublin.
O’Leary, the budget airline chief, said it does not make sense to him that the Government invested in a second runway at Dublin which he believes will go underused if the cap remains in place.
Environmental Concerns
He called the passenger cap “ridiculous” and “idiotic” and lashed out against Minister for Transport Eamonn Ryan over the rule.
Challenged that Ryan intervening would overrule planning laws and result in higher emissions, O’Leary said evidence exists that the airport can handle more than 32 million passengers per year and that the restriction is not a law, but a limit.
He claimed that Ryanair’s planes emit less emissions and that there would “only” be around a 25% increase in emissions if the cap was scrapped.
O’Leary said: “Dublin Airport has opened a second runway now. There’s capacity there for 50 or 60 million passengers a year.
“The industry could double traffic coming and going from Dublin Airport. And remember, 50% to 60% of this traffic is inbound, it’s visitors coming here, sustaining jobs in hotels.
“The Government is talking about raising the minimum wage in the hotel and hospitality sector – the only way you’re going to pay that is to deliver additional growth but the Green minister doesn’t want to do anything,” he added.
The Irish Aviation Authority's Response
The Irish Aviation Authority (IAA) has now contacted every affected airline and the Dublin Airport Authority inviting proposals on how the reduction will be implemented in practice, and how the proposals can be made to work.
This prompted O’Leary to say on RTÉ that the IAA “don’t even know what they’re up to”. He wants the government to scrap the cap, which was put in place as part of the planning permission for the second terminal at the airport.
But many environmentalists have welcomed the cap and the higher airfares — as a means of reducing emissions from air travel. Currently emissions from air travel worldwide accounts for 2.5% of global CO₂ emissions, contributing around 4% to global warming to date.
However, the cap at Dublin Airport has not been implemented for environmental reasons. Dublin Airport's passenger cap was set in 2008 by An Bord Pleanála (the Irish planning authority) to alleviate the problems with infrastructure of road transport to and from the airport.
The cap is 32 million passengers per year, with the operator, Dublin Airport Authority, estimating the demand to be between 34 million and 35 million passengers a year.
The Impact on Irish Tourism
The cap has caused problems for passengers, airlines, and the economy. The Irish Tourism Industry Council (ITIC) — and the airlines — have both warned that the cap threatens the tourism industry, undermining government policy for the sector. Tourism is a major contributor to the Irish economy.
The report calculates that nine out of every 10 tourists arrive by air, and 75% of the industry is made up of overseas holidaymakers.
Members of the Irish in British community use the London to Dublin route extensively, with many believing there is no viable alternative to flying if a flight back to Ireland is necessary.
Dublin Airport is the 13th busiest airport in Europe (latest figures available 2023), and aviation experts have pointed to the fact that along with Malta, Ireland is the only island nation in the EU and should be accorded more EU funding to either upgrade infrastructure, or ensure alternative routes are available for residents and visitors alike.
Ryanair's Success at Bournemouth Airport
Meanwhile, Ryanair has announced that 10 million passengers have passed through Bournemouth Airport since it began operations to/from Bournemouth in 1996. Ryanair was the first low-cost airline to operate at Bournemouth Airport and has grown its presence from a single route to/from Dublin to a 20-route operation connecting 9 countries across Europe with its 2 Bournemouth based aircraft.
A Critical Decision for the Future of Irish Tourism
A decision due next month on airplane landing slots at Dublin Airport could cut passenger numbers by up to one million next summer, airlines fear, as the regulator seeks to ensure a planning limit is enforced. There is already a cap for this winter but, as Barry O’Halloran reports, a draft decision by the Irish Aviation Authority (IAA) in September could bring more bad news for airlines, passengers and the tourism economy.
The Irish Government faces a critical decision. Should it prioritize environmental concerns by upholding the passenger cap, potentially harming Irish tourism and jobs? Or should it prioritize economic growth and tourism by scrapping the cap, potentially increasing emissions? The decision will have a significant impact on the future of Irish tourism and the Irish economy.
