Ryanair Plans to Expand in Spain with New Bases Conditional on Lower Airport Fees

Ryanair, the renowned Dublin-based airline, has expressed its intention to significantly expand its operations in Spain, potentially opening five new bases and increasing passenger traffic from the current projection of 55 million to 77 million annually. However, this ambitious expansion is contingent upon Spain offering competitive airport charges, as stated by Ryanair’s CEO, Eddie Wilson, at the FITUR tourism trade fair in Madrid.

Wilson outlined a prospective investment of EUR 5 billion (USD 5.4 billion), which would include stationing 33 additional aircraft at Spanish airports, opening five new bases, and increasing the current 730 routes to over 1,000 by the decade’s end. The expansion would target airports like Corvera, Jerez de la Frontera, Santander, Valladolid, and Vigo, which are in need of year-round inbound tourism.

This plan comes amidst discussions of a 4.09% increase in tariffs by Aena, the Spanish airport operator, starting from March. Despite the hike, Transport Minister Óscar Puente Santiago assures that the fees will remain below the pre-pandemic levels of 2019. However, Wilson urges for a reversal of this increase and the introduction of regional incentives to boost tourism throughout the year.

Wilson warns that without competitive costs, Ryanair might find it more attractive to operate in other countries such as Italy, Greece, or Morocco, especially considering the airline’s plan to incorporate 400 new aircraft in the coming years. The key for Spain’s airports, according to Wilson, is to maintain competitive fees to attract these new aircraft.

This statement aligns with Ryanair Holdings CEO Michael O’Leary’s recent meeting with Spanish Prime Minister Pedro Sánchez, where O’Leary pledged an investment of EUR 5 billion over seven years. Sánchez welcomed this commitment, recognizing it as a sign of confidence in Spain’s tourism and business sectors.

The discussion of fees also resonates in Italy, where Ryanair has proposed a potential EUR 8 billion (USD 8.7 billion) investment, conditional upon the elimination of local ticket taxes. O’Leary’s message in Italy mirrors his stance in Spain, emphasizing the need for favorable conditions to facilitate Ryanair’s expansive investments.

Ryanair’s proposed expansion in Spain represents a significant potential growth in the European aviation sector, highlighting the airline’s strategic focus on expanding its network and enhancing connectivity, while also underscoring the importance of competitive airport fees in attracting airline investments.