Ryanair's Azores Exit Delivers First Blow — Easter Bookings Collapse by Over 50 Per Cent
One week after Ryanair's final flight from the Azores, Easter bookings have collapsed by over 50 per cent across the archipelago's 4,600 accommodation units. The Ponta Delgada Chamber of Commerce estimates the annual economic impact at up to 160 million euros.
The first major test of life without Ryanair in the Azores has arrived — and the results are grim. Just one week after the low-cost carrier operated its final flight from the archipelago on 29 March, accommodation providers across the nine islands are reporting Easter bookings down by more than half compared to last year.
Meanwhile, Lisbon is preparing to open two new metro stations — the first in a decade.
According to the Azores Local Accommodation Association (ALA), more than 50 per cent of the region's 4,600 registered accommodation units recorded occupancy rates below 50 per cent over the Easter period. Roughly a third reported zero reservations at all. For an archipelago where tourism accounts for approximately 20 per cent of regional GDP, the numbers represent an early and alarming signal of what lies ahead.
How 400,000 Seats Vanished
Ryanair had served the Azores since 2015, operating six routes connecting the islands to Lisbon, Porto, London, Brussels, and other European cities. At its peak, the airline carried around 400,000 passengers per year to and from the archipelago — roughly 10 per cent of all tourist overnight stays in the region.
The airline blamed its withdrawal on what it called excessive airport charges imposed by ANA/VINCI, the French-owned monopoly airport operator, which Ryanair says increased fees by 35 per cent since the pandemic. Air traffic control charges rose by 120 per cent over the same period, the airline claimed, alongside Portugal's new two-euro travel tax and EU emissions trading costs that Ryanair argues unfairly penalise intra-European carriers.
“Portuguese government inaction on airport monopoly pricing” was Ryanair's blunt summary of why it pulled the plug.
An Economic Blow Worth Up to €160 Million a Year
A study by the Ponta Delgada Chamber of Commerce and Industry (CCIPD) estimates the total economic impact of Ryanair's departure at between €140 million and €160 million per year. The regional GDP reduction alone could reach €90 million to €105 million annually — equivalent to 1.5 to 1.7 per cent of the Azores' total economic output.
That figure could absorb up to three-quarters of the region's projected 2026 economic growth, effectively stalling development in an archipelago that had been riding a sustained tourism boom for the past decade.
“The impact could be immediate and affect various sectors, which could even result in an increase in travel prices to the Azores,” warned Miguel Quintas, president of the National Association of Holiday Villages (ANAV).
Can SATA and TAP Fill the Gap?
The regional government has insisted that SATA, the Azores-based carrier, and TAP Air Portugal are “well-positioned to compensate” for Ryanair's departure. Deputy regional leader Artur Lima said there would be no setbacks to the inter-island mobility subsidy for residents.
But neither airline can match the promotional pricing that made the Azores accessible to budget travellers across Europe. While Austrian Airlines, WestJet, and Air Canada are adding summer routes, these are long-haul focused and will not replace the lost capacity on short European hops.
Business owners are already warning of knock-on effects: some accommodation providers say they are considering selling properties or converting units from short-term tourist rentals to long-term residential use — a shift that would permanently reduce the islands' tourism capacity.
A Cautionary Contrast
The Azores' predicament stands in sharp contrast to Madeira, which successfully attracted and retained both Ryanair and EasyJet through what industry observers describe as a more professional negotiation and investment strategy. The Canary Islands, another competitor for Atlantic island tourism, also maintain robust low-cost carrier connections.
For the Azores, the question is no longer whether Ryanair's exit will hurt — it already has. The question is how long the damage will last, and whether the regional government's assurances will prove to be anything more than optimism.