Irish ultra low-cost carrier (ULCC) Ryanair went to the Portuguese press this week to say it could drop its services to this Azores this Winter season. The issue at stake, said the airline, are the raising airport and ETS costs, which reduce the attractiveness of flying to the Portuguese archipelago.
Ryanair currently serves two airports in the Azores: Ponta Delgada in São Miguel Island, where it bases a Boeing 737-800, and Lajes, Terceira Island.
In a press release which did not mention Terceira, Ryanair asked the Portuguese government to “urgently” take three measures to “protect Azores connectivity and jobs”.
First, to intervene and reverse the 26% price increase put forward by ANA, the private operator of most airports in Portugal, which has the concession at Ponta Delgada. Second, to implement the discount in passenger security charges, which has already been approved by the national regulator. And third, to reverse the presence of distant regions — namely the Azores and Madeira — from ETS schemes.
In an interview to Jornal Económico, a Portuguese business newspaper, the CEO of Ryanair DAC, Eddie Wilson, explained his company’s point of view. According to the executive, the three points would increase costs by EUR13; the ETS scheme represents “around 10 euros” of this number (Ryanair’s average fare in the year ended in March 2023 was EUR41).
Wilson pointed out that the discounts, if allowed by the government, would not apply only to Ryanair, but to all airlines operating to and from the Azores. “Here is where people get it wrong: we are not seeking a subsidy. We are asking that fees are not increased”.
The executive added that, if no action is taken, “there would be some [Ryanair] services in Summer, because it’s more profitable to go in the Summer, but not in the Winter”.
Wilson described the Azorian market as having a different dynamic compared to the Canary Islands, which are also far from Continental Europe and also have ETS charges. “They are better established as a Sun destination for Winter, while the Azores are in a different market. It’s more niche”.
Ryanair is the third-largest airline in the Europe-Azores market (excluding interisland services), with over 529 thousand seats offered in both directions in the year ended in September 2023, according to Cirium’s Diio Mi application.
The Irish carrier is behind Azores Airlines, the international brand of SATA Group, owned by the Azores Regional Government, which registers over 986 thousand seats. It also tracks TAP Air Portugal, the country’s state-owned flag carrier, with over 648 thousand.
From both Ponta Delgada and Terceira, Ryanair flies to Lisbon and Porto, trunk domestic routes due to the strong connection between archipelago and mainland. For this Summer season, the ULCC is also flying weekly rotations connecting Ponta Delgada to Nuremberg and London/Stansted.
