Amsterdam Schiphol to Significantly Raise Airline Fees in 2025

Name: Amsterdam Schiphol to Significantly Raise Airline Fees in 2025 | IaM
Uploaded: 2024-11-04T16:00:00+00:00
Description: Amsterdam’s Schiphol Airport is implementing a significant 41% increase in airline fees starting in 2025. A

Amsterdam’s Schiphol Airport is implementing a significant 41% increase in airline fees starting in 2025.

According to the Royal Schiphol Group, the revenue from these increased charges will go towards noise reduction, infrastructure improvements, and employee working conditions. In addition to the upcoming increase, fees are expected to rise by another 6% in 2026, followed by a 7.5% reduction in 2027. However, even with the decrease, airlines will still pay roughly €15 more per departing passenger in 2027 than in 2024.

The rise in fees is primarily driven by high inflation, rising interest rates, and financial recovery from pandemic-related losses.

Schiphol plans to invest a substantial €6 billion over the next five years in what it calls “the biggest investment plan in the airport’s history.” These funds will be used to improve airport quality, maintain infrastructure, and reduce noise pollution by targeting noisier planes and night flights. The airport has also committed €100 million of its funds to ease the cost burden on airlines.

“This sharp increase in charges is necessary to invest in the desired quality and sustainability at Schiphol, to improve services to airlines and passengers, and to provide decent working conditions for all people working at Schiphol. By making it significantly more expensive or even impossible to fly with noisier aircraft and to fly at night, we are contributing to the reduction of nuisance to our neighbours.”

Robert Carsouw, Royal Schiphol Group’s Chief Financial Officer

How Will Travellers Be Affected?

For travellers, especially those on short-haul flights, this fee hike may lead to higher ticket prices.

Budget airlines and short-haul routes that operate primarily out of Amsterdam will likely feel the impact most, as airlines will need to cover these rising costs, potentially making these flights less competitive. Travellers flying to and from Amsterdam on budget airlines may notice the biggest difference in ticket pricing as a result.

Eurostar: A Beneficiary of Higher Fees?

One unintended beneficiary of Schiphol’s fee increase could be Eurostar, the high-speed rail service connecting Amsterdam and London.

Eurostar’s former CEO Jacques Damas previously highlighted the challenge of competing with budget airlines on price. With higher airline fees, train travel may become a more appealing and competitive option for passengers, particularly for those seeking a sustainable travel alternative.

Eurostar has recently announced that its direct Amsterdam-to-London service will resume on February 10, 2025, and the expanded terminal at Amsterdam Centraal will allow an additional 200 passengers per train. For many travellers, this rail option could provide a comfortable and cost-effective alternative to flying, especially for trips within Europe.

KLM Pushes Back on the Fee Hike

KLM, the Netherlands‘ national carrier, has criticised Schiphol’s fee increase. Marjan Rintel, KLM’s CEO, warned that these additional costs could translate to higher ticket prices, ultimately affecting travellers and the Dutch economy.

“Schiphol shifts additional costs of setbacks and budget overruns largely to the traveller. More expensive tickets are inevitable if you increase airport charges so drastically. This is unreasonable and unwise,”

Marjan Rintel, KLM’s CEO

According to Rintel, the fee increase could affect Schiphol’s status as a global transit point, reducing the Netherlands' connectivity and potentially impacting its economic stability.

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