Airport charges have a much smaller relationship with airfares than airline competition and airport congestion, an Oxera study commissioned by ACI EUROPE has found. Across 54 European airports in the EEA, the United Kingdom and Switzerland, a 10% increase in charges was associated with a 0.35% rise in fares, while additional airline competition was linked to materially lower prices.
The analysis covered scheduled-flight prices from 2023 to 2025 at airports handling more than five million seats a year. A 10% increase in airline-market concentration was associated with a 1.06% fare increase, compared with 0.93% for a 10% increase in congestion. Oxera described the airport-charge effect as small and uncertain, with an estimated 26% pass-through to passengers.
Competition on individual routes produced larger effects. The entry of an additional airline was associated with an average 6.7% reduction in fares, while an airline’s exit was linked to a 9.7% increase. The study estimates annual passenger premiums of €6.4 billion from congestion and €1.7 billion from airline concentration at the airports covered, equivalent to average one-way premiums of €13.54 and €5.99 respectively.
The findings were produced for the European Commission’s review of the EU aviation regulatory framework, including airport-slot and airport-charges rules. Oxera argues that more effective slot use, stronger competition and additional airport capacity could improve passenger outcomes. The results show statistical associations rather than proving that changes in charges alone cause fare movements.