Dublin Airport faces an average 11% reduction in passenger charges over the next five years, regulators have ruled.
Currently, the fee that the airport charges airlines for passengers using the airport is capped at €8.81.
However, the Commission for Aviation Regulation (CAR) has ruled that will be reduced to €7.50 for the next two years - before gradually rising to €8.32 by 2024.
It means an average charge of €7.87 over the next five years.
The regulator insisted the new charge will allow the airport collect €1.4 billion in airport charges, alongside their commercial revenues (such as car parks and shops).
Commissioner Cathy Mannion explained: “Our decision allows Dublin Airport provide passengers with a high quality service while delivering key pieces of national infrastructure which will significantly increase the capacity of the airport.
"We allow for €2.3bn of investment which will deliver an airport capable of serving 40 million passengers per year at a level of service in line with international standards."
'Disaster'
DAA, the company which runs Dublin Airport, said it was "hugely disappointed" by the decision - claiming it is be a "disaster for passengers and the Irish economy".
DAA chief executive Dalton Philips argued: “Dublin Airport’s prices are already 30-40% lower than its European peers and the Regulator’s decision will mean Dublin’s prices will now be almost 60% lower than the EU market price.
"Forcing Dublin Airport to charge so far below the market price will have a hugely negative impact on our ability to finance the required investment programme at Dublin Airport."
Ryanair also criticised the regulator's decision, claiming it would allow the airport impose "excessive airport fees on passengers".
The airline's chief commercial officer David O'Brien claimed: "Today’s perverse and anti-consumer final determination by the CAR, now allows Dublin Airport to increase its charges over the next 5 years, while continuing to extract monopoly profits from its high airport fees and its very high commercial revenues coming from its car parks, retail, restaurants, and other outlets."
