Spanish airport charges row breaks out over proposed price hikes

The International Air Transport Association (IATA) and the Spanish Airline Association (ALA) have called for an annual 4.9 per cent reduction in Spanish airport charges, excluding inflation, over the 2027-2031 regulatory period.

They argued that such a move would still allow for nearly €10 billion in investment while strengthening Spain’s economic competitiveness.

The request comes as AENA, which operates the majority of Spain’s airports, has proposed an annual 3.8 per cent increase, excluding inflation, under the Third Airport Regulation Document (DORA III).

Airlines reject that proposal, maintaining that AENA has repeatedly underestimated traffic growth and, as a result, earned excessive regulated returns during previous regulatory cycles.

According to data cited by the associations, between 2017 and 2025, excluding the two pandemic years, actual passenger traffic was on average 15.3 per cent higher than the forecasts underpinning DORA I and DORA II.

They argue that this gap generated €1.3bn in excess regulated returns, costs ultimately borne by airlines and passengers.

In 2024, AENA’s regulated return reached 10.2 per cent, four percentage points above its expected return. This meant that nearly €400 million was overpaid by airlines and consumers in that year alone, the associations said.

Rafael Schvartzman, IATA’s Regional Vice President for Europe, said AENA had “gamed the regulatory system for years”, earning millions of euros more than it should have at the expense of passengers, airlines and the wider Spanish economy.

He described the company’s approach to forecasting as “creative”, arguing that it had enabled excessive returns, and said its request for further increases was “absurd”.

If approved, he warned, the proposal would deliver the highest regulated return of any comparable airport operator in Europe. “This is unsustainable and unrealistic, we need to see a reduction in charges,” he added.

Importantly, IATA and ALA insist that a 4.9 per cent annual reduction would not prevent AENA from proceeding with its planned €10bn investment programme during DORA III.

Citing separate studies commissioned from global consultancies Steer and CEPA, they said passenger traffic is expected to grow by around 3.6 per cent per year on average, compared with AENA’s forecast of just 1.3 per cent annually.

Under those assumptions, they argue, AENA would still be able to fully fund its investment plan while earning a return on capital of 6.35 per cent, which they describe as more generous than originally intended under DORA II.

Schvartzman said the proposed 4.9 per cent cut would improve Spain’s competitiveness as an international destination and help stimulate investment and job creation across the broader economy.

At the same time, he said, AENA could still afford its €10bn programme and deliver reasonable returns to shareholders, calling the proposal “a win-win for passengers, Spain, and the aviation industry”.