Irish Aviation Authority Issues Draft Determination on Dublin Airport Price Caps for 2027-2031
Dublin, 14 July 2026: The Irish Aviation Authority (IAA) has today published its Draft Determination on the maximum level of Airport Charges at Dublin Airport for 2027 to 2031. The IAA is proposing a nominal price cap of €8.85 per passenger for 2027. This is 15% lower than the 2026 price cap of €10.39 and brings the price cap back to the levels in 2023 to 2025 which ranged from €8.46 to €9.54.
The IAA is responsible for setting airport charges to protect and promote the reasonable interests of current and prospective users of Dublin Airport (airlines and passengers), balancing efficiency with the delivery of safe, secure, efficient high-quality services and infrastructure, thereby maximising the value which Dublin Airport provides to users and to the broader economy.
In 2022, the IAA set the level of airport charges to apply over 2023-2026. The proposed reduction relative to that decision is primarily driven by the following factors:
Passenger numbers are now higher than expected. This means that the relatively fixed costs are spread across more passengers and also means that more commercial revenues (such as retail, food and beverage, and car parking) are being generated.
Dublin Airport has delivered significantly less capital investment than is assumed in the current level of pricing. Projects have been delayed due to delivery and planning challenges.
Stronger performance on commercial activities than the IAA had forecast, even when accounting for higher passenger numbers.
Those factors are somewhat offset by cost increases. Specifically, the IAA proposes allowing for higher operating expenditure (which is also linked to higher passenger volumes and more commercial activity), as well as a somewhat higher cost of capital, relative to 2022.
After 2027, the trajectory of the price cap will mainly depend on Dublin Airport’s ability to deliver its capital investment programme. Pricing triggers related to specific projects can add up to €3.50[1] per passenger by 2031, if Dublin Airport’s programme proceeds as per its planned schedule. The ultimately effective price caps will further depend on:
- Whether Dublin Airport delivers a high-quality service. In each year, up €0.43 of the price cap is at risk for any underperformance in areas such as security queue times, passenger satisfaction, and asset availability, and there are potential bonuses of up to €0.22 for exceptional performance in terms of passenger satisfaction.
- General price inflation in the period – which is automatically fed through to the price caps.
Before inflation or service quality adjustments are factored in, the IAA expects the price cap to remain below €9 for 2028 and 2029. In 2030 and 2031, the price cap could increase to between €10 and €11 if the planned large infrastructure projects have commenced construction. However, if none of those projects are underway, then the price cap may reduce further, to below €8 in 2030 and 2031. If some projects are underway while others are delayed, then pricing will likely be somewhere within that range.
The IAA’s proposal, across the 5-year period:
- Expects passenger traffic to grow at an average rate of 3.2% per year, increasing from 39.4m in 2027 to 44.5m by 2031.
- Allows for the collection of between €1.6bn and €2bn in aeronautical revenues from Airport Charges by Dublin Airport.
- Expects Dublin Airport to spend €2.3bn in operating costs.
- Forecasts that Dublin Airport will generate €2.6bn in commercial revenue from its retail, food and beverage, car parking, lounges and other commercial activities.
- Gives approval for capital investment of €4.5bn. However, the IAA allows for capital investment between €2.4bn and €3.8bn to occur in the period, with the remainder beyond 2031. Examples of projects include:
- Pier 1 East (adding 14 new aircraft parking stands),
- a new Pier 5 extending from Terminal 2, a new US Preclearance facility,
- a larger check-in hall in Terminal 2,
- improvements to the road network in the vicinity of the airport,
- sustainability investments in terminal building infrastructure and solar power,
- as well as a range of projects in relation to asset care, security, commercial, and IT.
Launching the proposal, Declan Fitzpatrick, IAA CEO, said:
“The proposed price caps will enable Dublin Airport to deliver safe, secure and high-quality services to passengers and airlines for the period 2027 to 2031.
These proposals also enable Dublin Airport to deliver significant new infrastructure, adding capacity and improving the passenger experience. When delivered, this infrastructure will allow the airfield and passenger facilities to operate more efficiently, providing better service standards for all passengers and airlines.”
The proposal is now open for consultation, with submissions invited by Friday 18th September. A Final Determination will be made by the end of the year.
ENDS
For media queries please contact media@iaa.ie
[1] Unless stated otherwise, all prices and figures in this document are in real terms using a March 2026 price base, including capital investment.
Consultation document: https://www.iaa.ie/commercial-aviation/economic-regulation/airport-charges/2026-determination