Tashkent, Uzbekistan (UzDaily.uz) — Airport charges have a limited and mixed impact on airfares in Europe, while competition between airlines and airport congestion have a much stronger influence on ticket prices, according to a study by Oxera commissioned by Airports Council International Europe (ACI EUROPE).
Oxera analysed more than 62,000 data points covering nearly 6,000 European air routes. The findings were summarised in a report titled “What Really Drives Airfares”, published in Brussels. The analysis covered 5,915 routes involving 54 European airports across four IATA seasons between 2023 and 2025, ACI EUROPE said.
The study comes as the European Commission reviews the EU Airport Charges Directive and the airport slot regulation. Slot allocation rules are also under discussion in the United Kingdom.
The researchers compared the effects of a 10% increase in each of three factors on airfares. A 10% increase in airport charges was associated with an average rise in ticket prices of just 0.35%.
By comparison, a 10% increase in airport congestion was associated with a 0.93% rise in fares, while a 10% increase in airline concentration on a route was linked to a 1.06% increase.
The average pass-through rate of changes in airport charges to ticket prices was estimated at around 26%. In some model specifications, the impact of airport charges was not statistically significant.
According to the study, airport congestion enables airlines to benefit from what is known as a scarcity premium. This premium is estimated at 6.4 billion euros a year, equivalent to an average of 13.54 euros per one-way ticket at congested airports.
ACI EUROPE said the phenomenon affects not only major hubs such as London's Heathrow Airport but also airports across Europe with limited capacity.
The entry of a new airline on a route was associated with an average 6.7% decline in fares, while an airline's withdrawal was linked to a 9.7% increase. When competition is measured at airline-group level rather than by individual brands, market concentration is, on average, 20% higher.
The study also found that tickets purchased 14 days before departure cost approximately 20% more on average than those purchased 60 days in advance, even though airport charges remain unchanged over that period.
Oxera estimated that if congestion and airline concentration at every airport in the sample were no higher than the respective median levels, passengers could save around 19.5 euros per one-way ticket. The total potential savings would amount to 8.2 billion euros annually. The authors stressed that this was an illustrative scenario, not a forecast.
ACI EUROPE Director General Olivier Jankovec said the findings challenge the argument that lower airport charges benefit consumers.
“It's a convenient argument for airlines seeking to cut costs and protect their profits, but it does not stand up to economic scrutiny. Airport charges influence which airports airlines choose, where they develop their route networks and deploy capacity. However, there is no direct relationship between charges and fares. In other words, lower airport charges simply do not translate into lower prices for passengers,” he said.
According to Jankovec, the study points to three interconnected priorities: strengthening competition between airlines, making more efficient use of airport capacity and attracting investment to meet future demand.
He said achieving these objectives required reforms to airport slot regulations in the EU and the UK. He also noted that the issue had been highlighted more than two years ago in the Draghi report.
In support of reform, ACI EUROPE has presented an updated position on airport slots. The organisation proposes tightening rules for new market entrants to ensure effective competition.
It also advocates more efficient use of scarce airport capacity and greater transparency in slot allocation.
Another proposal is to give airports greater influence over how their capacity is allocated, taking into account the needs of local communities.
The document clarifies that the figures represent average estimates across the study sample and should not be treated as forecasts for individual routes. The policy recommendations reflect ACI EUROPE's interpretation of the findings.
