IATA Slams Approval of 33% Fee Hike at Schiphol Airport, Citing Economic Risks

The newly approved pricing structure allows the airport to raise its charges by 33% over the next three years, a move that could see tariffs doubling by 2027 compared to 2019 levels.


Devdiscourse News Desk | Updated: 05-06-2025 12:27 IST | Created: 05-06-2025 12:27 IST
IATA Slams Approval of 33% Fee Hike at Schiphol Airport, Citing Economic Risks
Schvartzman went on to highlight the broader implications of the fee hike, warning that the move introduces further uncertainty around Schiphol’s future as a viable hub airport. Image Credit: ChatGPT
  • Country:
  • Netherlands

The International Air Transport Association (IATA) has expressed serious concern following the decision by the Netherlands’ Consumer and Market Authority (ACM) to approve a significant cumulative increase in airport charges at Amsterdam’s Schiphol Airport. The newly approved pricing structure allows the airport to raise its charges by 33% over the next three years, a move that could see tariffs doubling by 2027 compared to 2019 levels.

The decision comes at a time when the aviation industry is still recovering from the long-term economic damage caused by the COVID-19 pandemic, supply chain bottlenecks, and geopolitical uncertainty. For airlines operating at one of Europe’s key hub airports, the approved fee hikes are seen not only as excessive but also as a threat to the airport’s competitiveness and the broader Dutch economy.

IATA’s Strong Rebuttal

IATA’s Regional Vice President for Europe, Rafael Schvartzman, did not mince words in his criticism. “It is very disappointing that the Regulator can consider a 33% cost increase to be reasonable,” he said. “Schiphol is set to double its charges in just 8 years, while its services decline and its capital spending fails to bring in much-needed improvements.”

Schvartzman went on to highlight the broader implications of the fee hike, warning that the move introduces further uncertainty around Schiphol’s future as a viable hub airport. “Along with the uncertainty over the airport’s future capacity, this can only further damage the viability of Schiphol as a hub airport and the wider economy of the Netherlands.”

Economic Importance of Schiphol

Amsterdam Schiphol is more than just a national airport — it is a key aviation and economic hub for Europe and the world. Aviation supports over 400,000 jobs in the Netherlands and contributes approximately 3.6% to the national GDP. The airport serves as a vital conduit for trade, tourism, and business, connecting the Netherlands to global markets.

Any changes in its operating environment have cascading effects across multiple sectors. From exporters relying on timely air freight to the hospitality and travel industry banking on international visitors, rising airport charges could reduce the competitiveness of the Netherlands as a whole.

Schiphol’s Service Woes and Capacity Concerns

Schiphol has faced repeated scrutiny over operational inefficiencies and declining service standards. Passengers have faced long queues, baggage handling issues, and flight delays in recent years, prompting questions about the airport’s ability to match the service levels of other major European hubs such as Frankfurt, Paris Charles de Gaulle, or London Heathrow.

Moreover, Schiphol’s future capacity remains under debate, with regulatory and environmental discussions surrounding night flight bans, cap reductions, and noise pollution. These variables only compound the unpredictability for airlines considering Schiphol as a long-term strategic base.

Airlines Bear the Burden

The increase in airport fees will directly impact airline operating costs, forcing carriers to either absorb the additional expenses or pass them on to passengers in the form of higher ticket prices. Either scenario undermines recovery efforts in a sector that has only recently started regaining momentum after the COVID-19 crisis.

Airlines are particularly frustrated that such a sharp increase in charges is being permitted without proportional enhancements in services or capacity. According to IATA, the airport’s capital investment projects have not yielded substantial improvements, making the fee hike difficult to justify.

Calls for Balanced Regulation

IATA has long advocated for cost-effective and performance-based regulation in airport charges. The association has urged regulators to consider the interests of both airport operators and airline users in order to maintain fair, transparent, and economically sustainable pricing structures.

In this case, IATA contends that the ACM has failed to uphold these principles. The decision, they argue, sends a troubling message to international airlines and may set a precedent for other European airports contemplating similar increases.

What’s Next for Schiphol?

As the new charges are gradually implemented, attention will turn to how Schiphol balances its rising costs with its service commitments and capacity development. Stakeholders from the aviation industry, Dutch business community, and government will likely engage in renewed discussions on how to sustain the airport’s role as a competitive global hub without placing undue strain on airlines or consumers.

The ACM’s approval of a 33% charge increase at Schiphol Airport has triggered a sharp backlash from IATA and raised red flags across the aviation industry. With air travel resuming and economies rebuilding, decisions that risk pricing out airlines and passengers could have long-term implications not only for Schiphol’s reputation but also for the Dutch economy’s global connectivity and competitiveness.

 

Give Feedback