A limit on passenger numbers using Dublin airport could hit business travel between the Ireland and the UK, a leading TMC has warned.
FCM Travel, business travel division of Flight Centre Travel Group, cautioned that small and medium-sized enterprises (SMEs) would be particularly badly hit.
The TMC echoed concerns voiced by Dublin Airport Authority (DAA), which warned that the current passenger cap could cost the Irish economy at least €500 million.
DAA last month admitted that its 32 million a year passenger cap will lead to a dampening in traveller numbers from late autumn.
“Some airlines operating at Dublin have also decided to reduce the scale of their operations because of the uncertainty with the 32 million terminals passenger cap,” DAA said.
FCM Travel highlighted a “growing threat” to Irish businesses, especially those reliant on frequent and last-minute travel to the UK and called for the cap to be raised “for the good of all passengers”.
Europe managing director Andy Hegley said: “Last month, ticket prices sold by FCM from Dublin to London were, on average, up nearly 24% compared to the same period last year.
“As capacity continues to shrink, we expect these prices could rise even further.
“Travel is a necessity, not a discretionary spend for corporates. It’s a key part of growth strategy for modern businesses looking to find new customers and ideas, to survive and thrive, but without lifting the current passenger cap, small businesses will feel the impacts the most.
“Passengers, whether they are travelling for business or leisure, are the ultimate losers here – they must be at the heart of decisions going forward.”
He added: “This issue goes beyond tourism – it’s a matter of maintaining Ireland’s position as a business hub and ensuring Irish companies can continue to grow and capitalise on opportunities abroad in the most cost-effective way.
“We’ve seen the Dublin to London route rebound to pre-pandemic levels with bookings increasing by eight per cent year on year (April to September). Over one third of Irish exports go to the UK and it’s an especially important market for small businesses who are looking to expand.
“We could see reduced flight availability, particularly at peak times, making it more difficult for our clients to book last-minute or convenient flights. Business customers, who often book trips one to two weeks out, are likely to face much higher fares as peak airline pricing hits during these windows.
“Longer travel times due to fewer direct flight options and increased congestion at the airport could also cause significant delays for time-sensitive business trips.”
DAA chief executive Kenny Jacobs said earlier this month that a million seats coming out next year “has real financial consequences for Ireland”.
He said: “We estimate the damage to the economy to be at least €500 million, increasing to €700 million if we consider lost airfares too.
“There are also real consequences for airlines, people working at the airport and the travelling public, as well as knock-on impacts on tourism and jobs. This issue is no longer just an airport or a planning issue, it is now an Ireland issue.
“Lifting the passenger cap to 40 million passengers a year is in line with national aviation policy.”