IATA Urges Spain to Cut Airport Charges to Improve Competitiveness Amid Massive Overcharges: What New Updates You Need to Know

IATA Urges Spain to Cut Airport Charges to Improve Competitiveness Amid Massive Overcharges: What New Updates You Need to Know

IATA Urges Spain to Cut Airport Charges to Improve Competitiveness Amid Massive Overcharges: What New Updates You Need to Know

The International Air Transport Association (IATA) asked Spain to reduce airport fees by 4.9% for the next five years. The IATA reports that the state-run airport operator (AENA) has overcharged airports by over €1.3 billion. AENA manages most Spanish airports and is proposing (under the DORA III regulatory period) an annual increase of 3.8% (disregarding inflation) for the next five years. IATA and the Spanish Airline Association (ALA) have publicly condemned this increase, stating it will negatively impact Spain’s ability to compete and will increase prices for consumers.

IATA and ALA’s Proposal to Reduce Airport Charges

IATA and ALA have proposed a 4.9% annual decrease of Spanish airport charges from 2027 to 2031. This is to ensure the charges are in line with a reasonable increase in the economic growth of Spain. The charges are currently excessive for the amount of air traffic.

The airlines’ proposed cut would still mean that AENA can continue its ambitious €10 billion airport investment programme. In this case, AENA would maintain its infrastructure upgrades, whilst providing a fairer return to airlines and consumers without excessive charges.

AENA’S HISTORY OF FORECASTING ERRORS AND OVERCHARGING

IATA and ALA oppose AENA’s proposed increases due to AENA’s history of forecasting errors. In all of Spain’s airports, from 2017 to 2025, excluding the pandemic years, AENA underestimated passenger traffic. In AENA’s passenger forecasts, the actual number of passengers was, on average, 15.3% higher. AENA’s forecasting errors resulted in AENA receiving excessive regulated returns of €1.3 billion in overpayments from passengers and airlines.

By AENA’s regulated return, AENA received 10.2% in 2024, which was 4% higher than was expected. AENA’s passenger forecast errors led to over €400 million in overpayments, which IATA and ALA stated negatively impacted the Spanish economy, airlines, and consumers.

Why Spain Needs to Reduce Charges to Stay Competitively Priced

The ALA and IATA both point out both AENA’s past history of excessive predictions and the current unsustainable and unrealistic nature of high airport charges. IATA’s Regional Vice President for Europe states that the airport operator has been skirting the regulations for years and, at the cost of passengers and airlines, has pocketed millions of euros as excess returns.

Many feel that AENA’s proposed 3.8% increase would result in the most highly regulated return among any of the comparable airport operators in Europe and that this would be very bad for Spain’s position in the world of aviation. IATA and ALA believe that by making Spain’s airport charges lower, it will keep Spain’s competitive advantage and make it a more desirable place for international tourists. This would also lessen the cost burden on both passengers and airlines.

AENA’s Investment Plans Unaffected with Charge Decrease

Even with calls for charge reductions, IATA and ALA have noted that AENA’s ability to move forward with its €10 billion investment programme remains unaffected. IATA’s commissioned studies from global consultancy firms Steer and CEPA indicate that with passenger traffic growth predicted at 3.6% annually, AENA’s forecast traffic growth at 1.3% means AENA will be able to obtain the financial returns and fund the necessary upgrades to the infrastructure for her investments.

The consultancy reports indicate that AENA could achieve a capital return of 6.35% under more optimistic growth of traffic assumptions. This return is more generous than the expected returns of the previous regulatory framework, DORA II. This enables AENA to reach her investment objectives without overcharging airlines and passengers.

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