New Study Examines Drivers of European Air Fares
Research suggests that competition levels impact ticket prices more significantly than airport charges.
Updated on Oct. 23, 2026 in Air Travel
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A new study by Oxera analyzing nearly 6,000 European air routes finds that airline market concentration and congestion have a greater effect on prices than airport charges. The findings challenge the assumption that lower fees for airports automatically lead to cheaper travel for passengers.
Why it matters
Understanding these price drivers is critical as ACI Europe pushes for reforms to airport slot regulations in the UK and beyond. The data suggests that increasing competition on specific routes may be a more effective strategy for reducing ticket costs.
The study analyzed more than 62,000 data points across thousands of routes. Researchers found that a 10% increase in airport congestion adds a 0.93% premium to fares, contributing to an annual total scarcity rent of 6.4 billion euros.
The players
Oxera
An economics consultancy firm that specializes in finance, regulation, and competition policy analysis.
ACI Europe
The trade association for European airports that represents the interests of over 500 airports across the continent.
The details
The report indicates that the entry of a new airline on a route correlates with 6.7% lower fares, while an airline withdrawal results in 9.7% higher costs. This scarcity premium equates to an additional 13.54 euros per one-way ticket at congested airports like London Heathrow.
Timeline
The Oxera study on European air fare drivers was released on October 23, 2026.
Travel Outlook
This study aligns with current efforts to revise EU and UK airport slot regulations to increase efficiency. The findings suggest that reforms focusing on capacity management could mitigate the 6.4 billion euro annual scarcity premium currently affecting travelers.
Travelers should look for routes serviced by multiple carriers, as the entry of a new airline is correlated with lower ticket prices. Conversely, fares are statistically likely to rise on routes where airlines have recently exited the market due to reduced competition.
The takeaway
Consumers can anticipate price variations based on route competition rather than just base airport fees. Checking for carrier diversity on a flight path remains the most practical method for finding lower fares.
Further reading
For more information on the industry, visit the Air Travel section.
Source note: This article includes information reported by TravelDailyNews International.
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Do you believe lowering airport fees would result in lower airfares for your own travels?
