Ryanair Cites Fee Increases as Reason for Closing Ponta Delgada Base in the Azores

Ryanair has announced it will not be reopening its seasonal base in Ponta Delgada, Azores, this upcoming summer, attributing the decision to a significant rise in airport fees. During a press conference in Lisbon, Ryanair’s Group Chief Executive, Michael O’Leary, highlighted the financial impracticality of operating the base due to a 9% increase in costs imposed by ANA Aeroportos de Portugal.

Over the four years Ryanair operated in Ponta Delgada, the airline faced financial losses, particularly during the winter months when demand plummeted. O’Leary criticized ANA’s decision to raise fees, stating it has rendered the operation of the base unviable and accused the airport authority of effectively “killing” Ryanair’s presence there due to lack of competition and the resultant monopolistic pricing strategy.

The increase in airport fees at Ponta Delgada contrasts with trends seen in other European airports where rates have been adjusted downwards to reflect inflationary pressures. O’Leary compared this unfavorably to practices in France where airport fees have been lowered in response to economic conditions, suggesting ANA is exploiting its monopoly to increase fees.

Furthermore, O’Leary hinted at the potential closure of Ryanair’s base in Funchal, where operational costs have also risen by 6% this year. This situation has put the future presence of Ryanair in these locations in jeopardy, as the airline evaluates the sustainability of its operations in the face of increased fees.

Despite reducing its frequencies, Ryanair continues to maintain a limited presence in Ponta Delgada with just four flights, in contrast to other Portuguese carriers that operate more frequently. This announcement follows Ryanair’s previous indications of scaling back operations at other Portuguese airports, including Faro and Porto, due to similar concerns over rising airport fees.

Ryanair’s strategic decision underscores the challenges airlines face with fluctuating operational costs and the impact of local airport fee policies on their ability to offer competitive and sustainable services, particularly in seasonal and less frequented destinations.