RyanAir Challenges Airport Fee Hikes

Economy airline Ryanair turned to the Competition Authority last year to challenge Tallinn Airport’s fees hike before deciding to cut destinations from Tallinn.

Ryanair said on Wednesday it would cut seven destinations from Tallinn. Tallinn Airport CFO Eero Pärgmäe suggested the airline’s decision followed a looming airport fee hike and fierce competition.

Minister of Economic Affairs and Communications Riina Sikkut (SDE) said that expectations for the state-owned airport have not changed and ensuring advantageous air links from Tallinn remains its priority. But the owner’s expectations also include profitable and effective operation.

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“Clearly, it is difficult to serve both short and long-term goals – growing the number of destinations and departures requires sustainable ways of covering costs. Tallinn Airport has said that it has not hiked the fees for around ten years, which now fall short of those charged at nearby airports,” Sikkut said.

Tallinn Airport’s 2022 financials have not been authorized. The first nine months’ net profit was €8.6 million, up from €2.5 million a year ago. The airport’s net profit was €9 million in 2019, before the Covid pandemic.