The introduction of a 10 euros tax on air passengers will add further woes to Irish airports as they face a bleak 2009 due to Ireland’s economic recession. Although Dublin airport managed to record a growth of 1% with a total of 23.5 million passengers in 2008, with Cork’s passenger count growing 2.5% (3.25 million passengers) and Knock’s by 13% (0.63 million passengers), Shannon airport traffic suffered a 12% to 3.1 million passengers.

Dublin and Shannon airports are however likely to experience double-digit passenger declines in 2009 as low-cost carrier Ryanair has just announced it is reducing its activity in the country. With the introduction of the 10 euros tourist tax, the airline will reduce cut 20% of its Dublin-based fleet (from 22 to 18 aircraft) and 18% of its weekly flights (from over 700 to under 600). The airline now expects its traffic to fall from 10.8 million in 2008 to 8.7 million in 2009. Ryanair will also cut 200 jobs at its Dublin base.

Meanwhile, DAA - which runs Ireland’s three major airports at Dublin, Cork and Shannon - believes that Ryanair’s changes have nothing to do with the new 10 euros tax. According to the airport’s press department, “Ryanair is taking a commercial decision aimed at maximising its own profits due to the current downturn. As always, Ryanair seeks to blame someone else for its decision [...] When economic conditions improve, we expect Ryanair will be one of the first airlines to expand its routes and services out of Dublin.”