Route Development
Schiphol Airport Freezes 2026 Fee Increase to Stay Competitive
Amsterdam Schiphol halts 2026 fee hike after 41% rise in 2025, balancing infrastructure investment with airline competitiveness and environmental goals.
Amsterdam Airport Schiphol’s recent decision to freeze planned fee increases for 2026 marks a significant strategic pivot amid mounting airline pressure and evolving competitive dynamics within the European aviation market. This move follows the airport’s implementation of a substantial 41% charge increase in 2025, a change that elevated Schiphol to one of the most expensive airports in Europe and triggered strong resistance from major airline customers, especially KLM. The decision to halt the planned 5% increase for 2026 underscores the delicate balance between the need for infrastructure investment and the imperative to remain competitive, particularly as airports across Europe navigate post-pandemic recovery, inflation, and environmental regulation.
Schiphol’s approach reflects broader trends in the aviation sector, where airports are recalibrating their financial strategies to reconcile rising operational costs with the necessity of retaining airline partners and safeguarding their hub status. The interplay between regulatory frameworks, airline economics, and evolving market conditions makes Schiphol’s policy shift a noteworthy case study in contemporary airport management.
As the aviation industry continues to recover from the disruptions of recent years, Schiphol’s experience offers critical insights into the challenges and opportunities facing major European hubs, particularly regarding cost recovery, stakeholder engagement, and sustainable infrastructure development.
Schiphol’s airport charges are governed by Dutch aviation law and overseen by the Netherlands Authority for Consumers and Markets (ACM). This regulatory system, which operates on a three-year cycle, requires Schiphol to consult with airlines and justify any proposed fee adjustments. The Dutch Aviation Act stipulates that airlines should bear the costs associated with airport usage, while Schiphol’s profit margins are capped by law.
The most recent fee-setting process, covering the period 2025–2027, was contentious. Ten airlines and three representative organizations filed complaints against the new charges introduced in April 2025. The ACM ultimately approved the increases in June 2025, setting precedents for how pandemic-related losses and infrastructure investment costs are allocated between airports and airlines.
Prior to this cycle, Schiphol’s charges from 2022 to 2024 were reportedly over 550 million euros below the level needed to cover operational costs, resulting in a significant shortfall that contributed to the sharp increases now being implemented. This context is crucial for understanding the magnitude and rationale behind Schiphol’s recent fee adjustments.
In April 2025, Schiphol enacted a 41% increase in airport charges, the largest in its modern history. This adjustment was driven by a confluence of factors: high inflation, increased interest rates, pandemic-related revenue losses, and the need to fund a 6 billion euro infrastructure program over five years.
For airlines, the financial impact was immediate and significant. Carriers began paying an average of 15 euros more per departing passenger compared to 2024, a change that particularly affected high-frequency hub operators like KLM. The cumulative effect over the three-year period was projected to reach 37% by 2027, though this included both planned increases and a scheduled decrease. KLM, Schiphol’s largest customer, led the opposition. CEO Marjan Rintel described the increases as “unreasonable and unwise,” arguing they would raise ticket prices and erode Schiphol’s competitiveness. The International Air Transport Association (IATA) also voiced strong objections, with regional vice president Rafael Schvartzman highlighting the disconnect between rising costs and service quality.
“Allowing a 33% cumulative cost increase over three years is disappointing, particularly given declining service levels at the airport.”, Rafael Schvartzman, IATA Despite industry resistance, the ACM found the 41% increase “not unreasonable.” The regulator’s assessment involved benchmarking against other European airports and reviewing Schiphol’s justification for cost recovery, including pandemic-related losses and environmental objectives.
The ACM also endorsed Schiphol’s charge differentiation strategy, which imposes higher charges on noisier aircraft and night flights to incentivize environmental improvements. However, the regulator limited Schiphol’s authority to unilaterally ban certain aircraft types, noting such measures require legislative changes.
This regulatory endorsement provided Schiphol with a degree of certainty but did not quell industry concerns about the long-term sustainability of such steep increases, particularly amid broader competitive pressures.
On September 29, 2025, Schiphol announced it would freeze airline charges for 2026, reversing the previously planned 5% increase. CFO Robert Carsouw acknowledged the impact of the 2025 increase on airlines and indicated that the freeze was enabled by cost control, efficiency measures, and a voluntary contribution from Schiphol itself.
The freeze was the result of ongoing negotiations with airline representatives and reflects Schiphol’s willingness to respond to market realities. Formal confirmation of the freeze is expected by the end of October 2025.
Financially, this decision alters Schiphol’s revenue projections and investment planning. The airport had anticipated the 2026 increase as part of its strategy to fund major infrastructure upgrades while complying with regulatory requirements. Offsetting the increase through internal measures signals a shift toward prioritizing long-term competitiveness over short-term revenue gains.
“The 2025 charge increase has a significant impact on airlines. Some airlines consider it too expensive.”, Robert Carsouw, Schiphol CFO Schiphol’s 6 billion euro infrastructure program is the largest in its history, targeting critical upgrades across terminals, baggage systems, and other facilities. The program addresses years of deferred maintenance and aims to improve both operational efficiency and passenger experience. CEO Pieter van Oord has openly admitted that current infrastructure conditions fall short of expectations, emphasizing the need for ongoing investment. Notably, the airport has introduced lifting aids at all 385 baggage hall workstations and invested 495 million euros in renewal and sustainability initiatives in the first half of 2025.
Despite these efforts, passenger satisfaction remains below target levels, highlighting the challenge of aligning fee increases with tangible service improvements. The success of the investment program will be critical to justifying current and future pricing strategies.
“Our infrastructure is the foundation of our service, but it is currently far from what we want to offer our passengers as a quality airport in the Netherlands.”, Pieter van Oord, Schiphol CEO The 2025 fee increases have repositioned Schiphol among the most expensive airports in Europe, with S&P Global ranking it alongside London Heathrow. KLM and other stakeholders have pointed out that no other major European hub has implemented increases of similar magnitude.
This shift has implications for airline route planning and passenger flows, especially as the Dutch government has capped annual air traffic movements at 478,000, further constraining growth. Nevertheless, Schiphol maintains a strong connectivity advantage, linking the Netherlands to 299 direct destinations, including 123 intercontinental routes.
Maintaining this connectivity premium while managing cost competitiveness will be key to Schiphol’s long-term market position, especially as other European hubs pursue their own investment and pricing strategies.
Schiphol’s financial results for the first half of 2025 show a net result of 214 million euros, up from 99 million euros in the same period of 2024. Revenue increased by over 20% year-on-year, supporting accelerated investment in infrastructure renewal and sustainability.
However, the scale of the investment program continues to pressure cash flows, with operational cash flow after investments remaining negative, though improved compared to the previous year. The airport’s shareholder structure, dominated by the Dutch State, provides stability for long-term planning, and the government has approved a lower dividend payout to support capital requirements.
Environmental regulation is an increasingly important driver of Schiphol’s strategy. The airport has introduced differentiated charges based on aircraft noise, making night flights significantly more expensive. Early data suggests a 7 percentage point increase in the share of quieter aircraft operating at Schiphol, supporting noise reduction goals set by the European Commission and Dutch authorities. Schiphol aims for a 15% noise reduction by the end of 2026 and 20% by the end of 2027, in line with European and national environmental targets. Schiphol is a major economic driver for the Netherlands, supporting hundreds of thousands of jobs and contributing significantly to national GDP. Its role as a hub for business, tourism, and cargo makes its pricing and investment decisions critical not just for airlines, but for the broader Dutch economy.
The airport’s connectivity facilitates economic growth, with direct links to fast-growing global markets and substantial multiplier effects throughout the region. Maintaining this role requires balancing infrastructure investment, competitive pricing, and compliance with evolving environmental and capacity regulations.
The current policy shift, freezing the 2026 fee increase, offers temporary relief for airlines but underscores the long-term challenge of funding necessary investments while maintaining market competitiveness and regulatory compliance.
Schiphol Airport’s decision to freeze the planned 2026 fee increase is a clear response to the competitive and stakeholder pressures that followed its substantial 2025 hike. The move highlights the airport’s recognition of the need to balance cost recovery and infrastructure investment with the imperative to remain attractive to airlines and travelers.
Going forward, Schiphol’s ability to maintain strong airline relationships, deliver on its infrastructure promises, and meet environmental goals will be crucial. The experience at Schiphol serves as a case study for other European hubs facing similar challenges, illustrating the complex interplay of regulation, market forces, and operational realities in the modern aviation sector.
Q: Why did Schiphol decide to freeze the 2026 fee increase? Q: How do Schiphol’s charges compare to other European airports? Q: What is Schiphol doing to address environmental concerns? Q: How is Schiphol funding its infrastructure investment program? Q: What are the broader implications for the Dutch economy? Sources: Schiphol Newsroom
Schiphol Airport’s Strategic Retreat: Freezing Fee Increases to Maintain Competitive Position in European Aviation Market
Historical Context and Regulatory Framework
The 2025 Charge Increase and Industry Response
Regulatory Approval and Market Authority
Recent Decision to Freeze 2026 Fee Increases
Infrastructure Investment and Service Quality
Competitive Positioning in the European Market
Financial Performance and Environmental Considerations
Broader Economic and Industry Implications
Conclusion
FAQ
A: The freeze was implemented in response to strong airline opposition to the 2025 charge hike and concerns about competitiveness. Schiphol cited cost control, efficiency measures, and a voluntary contribution as enabling factors.
A: Following the 2025 increase, Schiphol became one of the most expensive airports in Europe, with charges comparable to London Heathrow and higher than many other major hubs.
A: Schiphol has introduced differentiated charges to incentivize quieter, cleaner aircraft and aims for significant noise reduction by 2027, aligning with European and Dutch environmental targets.
A: The airport’s investments are funded through a combination of increased charges, operational efficiency, and support from its majority shareholder, the Dutch State. Dividend payouts have been reduced to retain capital.
A: Schiphol is a key economic engine for the Netherlands, supporting jobs, tourism, and business connectivity. Its pricing and investment strategies have wide-reaching effects on national and regional economic performance.
Photo Credit: Amsterdam Airport Schiphol
Route Development
Heathrow Ends 100ml Liquid Limit with £1 Billion Security Upgrade
Heathrow Airport completes £1 billion upgrade with CT scanners, allowing liquids up to 2L and laptops in bags for departures.
Heathrow Airport has officially announced the completion of a massive security upgrade across all four of its terminals, marking the end of the restrictive 100ml liquid limit for departing passengers. According to an official press release issued on January 23, 2026, the airport has finalized a £1 billion investment to install next-generation Computed Tomography (CT) scanners, positioning itself as the largest airport in the world to fully deploy this technology across its entire operation.
The upgrade fundamentally changes the pre-flight experience for millions of travelers. Under the new regulations, passengers departing from Heathrow can now carry liquids in containers of up to 2 liters in their hand luggage. Additionally, large electronic devices such as laptops and tablets no longer need to be removed from bags during screening. The airport states that this move will not only streamline the security process but also significantly reduce single-use plastic waste.
The core of this upgrade involves the installation of advanced CT scanners, similar to technology used in medical environments. These machines generate detailed 3D images of cabin baggage, allowing security officers to rotate and analyze the contents on-screen without requiring passengers to physically separate items.
In its announcement, Heathrow confirmed that the requirement to place liquids in clear plastic bags has been eliminated. This operational shift is expected to have a substantial environmental impact. The airport estimates that removing the plastic bag mandate will save approximately 16 million single-use plastic bags annually.
Data released by the airport suggests the new technology is already delivering performance improvements. Heathrow reported that in 2025, it was named “Europe’s most punctual hub airport.” During that period, more than 97% of passengers waited less than five minutes for security screening. Furthermore, the airport noted that its baggage load rate improved to over 98% in 2025, indicating a reduction in missed bags.
Thomas Woldbye, CEO of Heathrow, highlighted the significance of the milestone in a statement included in the press release:
“Every Heathrow passenger can now leave their liquids and laptops in their bags at security as we become the largest airport in the world to roll out the latest security scanning technology. That means less time preparing for security and more time enjoying their journey, and millions fewer single-use plastic bags. This billion pound investment means our customers can be confident they will continue to have a great experience at Heathrow.”
While the completion of this project is a major achievement for UK aviation infrastructure, it comes after significant industry-wide delays. The UK government originally set a deadline of June 2024 for major airports to install this technology. Like Gatwick, Manchester, and Stansted, Heathrow faced logistical hurdles, including supply chain issues and the need to reinforce floors to support the heavy scanners, that pushed the completion date to January 2026.
Travelers must remain vigilant regarding the limitations of this new rule. The ability to carry liquids up to 2 liters applies only to passengers departing from Heathrow. Many international destinations, as well as other airports within the UK and EU, may not have completed their upgrades. Passengers transferring through other hubs or returning to Heathrow from airports without CT scanners will still be subject to the traditional 100ml liquid limit. Consequently, purchasing large liquids duty-free or packing full-sized toiletries in carry-on luggage could result in confiscation at the return airport or a connecting security checkpoint. We recommend checking the specific security regulations of all airports on your itinerary before packing.
Do I still need to put liquids in a plastic bag at Heathrow? What is the new liquid limit? Do I need to take my laptop out of my bag? Does this apply to my return flight?
Heathrow Scraps 100ml Liquid Limit Following £1 Billion Security Overhaul
Next-Generation Security Technology
Operational Efficiency Gains
AirPro News Analysis: Context and Traveler Advisory
The “One-Way” Rule Caveat
Frequently Asked Questions
No. The requirement to use clear plastic bags for liquids has been eliminated for departures from Heathrow.
Passengers can now carry liquids in containers of up to 2 liters in their hand luggage.
No. Laptops, tablets, and other large electronics can remain inside your cabin baggage during the screening process.
Not necessarily. These rules apply to departures from Heathrow. You must check the rules of the airport you are flying back from, as many still enforce the 100ml limit.
Sources
Photo Credit: Heathrow Airport
Route Development
San Francisco International Airport Opens New Operations Center with Digital Twin
SFO unveils a $250M Airport Integrated Operations Center featuring digital twin technology to centralize and enhance airport management.
This article is based on an official press release from San Francisco International Airport (SFO).
San Francisco International Airport (SFO) has officially opened its new Airport Integrated Operations Center (AIOC), a centralized hub designed to unify critical airport functions under one roof. According to an official announcement from the airport, the facility began full operations with a celebration on January 22, 2026. The 22,000-square-foot center represents a significant shift in how the airport manages its daily logistics, moving from decentralized departments to a collaborative, technology-driven model.
Located within the newly constructed Courtyard 3 Connector (C3C), a secure building linking Terminal 2 and Terminal 3, the AIOC serves as the operational “brain” of the airport. SFO officials state that the facility brings together security, dispatch, facilities, and airline coordinators into a single workspace, enabling faster response times and better coordination during both routine operations and emergencies.
The AIOC is a primary component of the Courtyard 3 Connector project, which SFO reports has an estimated value of $250 million. The project was delivered by a design-build team led by general contractor Hensel Phelps, with architectural design by HOK and MEI Architects. The facility features 67 workstations designed to foster cross-functional collaboration, breaking down the traditional silos that often exist between different airport departments.
Beyond housing the operations center, the C3C building provides a secure post-security walkway for passengers moving between terminals. This dual-purpose design improves passenger flow while simultaneously upgrading the airport’s operational infrastructure. In line with SFO’s sustainability goals, the building is “Net Zero Energy ready” and is targeting LEED Gold certification.
A key feature of the new center is its integration of “digital twin” technology. Developed in partnership with Esri, this system creates a real-time 3D digital replica of the entire airport complex. According to the project details, this system allows staff to monitor a wide array of operational metrics, including:
The system utilizes color-coded alerts to notify staff of potential issues before they escalate. For example, the system can flag delays or early arrivals, allowing the integrated teams to reallocate resources proactively. In the event of a crisis, such as a security breach or natural disaster, the AIOC converts into a command post to coordinate a unified response among all agencies.
Mike Nakornkhet, the Airport Director at SFO, emphasized the strategic importance of the new facility in the official release:
“The AIOC is all about running the very best airport operation to deliver a consistent and seamless airport experience for our guests. Utilising a wealth of emerging technologies and historical data, the AIOC’s primary purpose is to ensure teams have the capacity to proactively monitor conditions, activate contingency plans and deploy resources.”
The opening of SFO’s AIOC highlights a broader trend in the aviation industry toward “predictive operations.” Historically, airports have operated in a reactive mode, addressing bottlenecks at security or baggage claim only after they occur. By co-locating key decision-makers and equipping them with a digital twin, SFO is attempting to transition to a model where operational disruptions are identified and mitigated before they impact the passenger. This consolidation of command and control is particularly critical for airports with constrained footprints like SFO. With limited physical space to expand, efficiency gains must come from better management of existing assets. The “digital twin” concept, while common in manufacturing and urban planning, is rapidly becoming the standard for major international hubs seeking to optimize gate utilization and turnaround times without pouring new concrete.
What is the Airport Integrated Operations Center (AIOC)? Where is the new facility located? What is a “Digital Twin”? When did the AIOC open?
SFO Unveils High-Tech “Nerve Center” to Centralize Airport Operations
A $250 Million Infrastructure Investment
Digital Twin Technology and Real-Time Monitoring
AirPro News Analysis
Frequently Asked Questions
The AIOC is a centralized facility at SFO where security, dispatch, maintenance, and airline operations teams work together in a shared space to manage airport logistics 24/7.
It is located in the Courtyard 3 Connector (C3C), a new building that connects Terminal 2 and Terminal 3.
A Digital Twin is a virtual 3D replica of the airport that uses real-time data to simulate and monitor operations, helping staff predict and prevent delays.
While the unit began initial operations earlier, the official opening celebration took place on January 22, 2026.
Sources
Photo Credit: San Francisco Airport
Route Development
United Airlines CEO Defends Gate Control at Chicago O’Hare in 2026
United Airlines commits to defending gate allocation at Chicago O’Hare amid competition with American Airlines using flight volume strategies in 2026.
This article summarizes reporting by Reuters and Rajesh Singh.
The ongoing struggle for control over Chicago O’Hare International Airport (ORD) intensified sharply on Wednesday, January 21, 2026. During United Airlines’ fourth-quarter earnings call, CEO Scott Kirby issued a stark warning to rival American Airlines, signaling that United is prepared to aggressively defend its market share and gate allocation at one of the world’s busiest aviation hubs.
According to reporting by Reuters, Kirby explicitly stated that United is “drawing a line in the sand” regarding gate competition in 2026. The conflict centers on the airport’s “use-it-or-lose-it” leasing agreement, which reallocates gates based on flight departure volumes. With American Airlines attempting to regain ground lost in 2025, United has pledged to match any capacity increases necessary to prevent its rival from acquiring additional infrastructure.
The core of this dispute is not just about rhetoric; it is a structural battle over real estate governed by the 2018 Airline Use and Lease Agreement (AULA). As reported by Reuters, Kirby emphasized that United would add “as many flights as are required” to maintain its current gate count.
During the earnings call, United leadership highlighted a significant financial divergence between the two carriers at their shared hub. Kirby claimed that while United’s O’Hare operations generated approximately $500 million in profit in 2025, American Airlines suffered a loss of roughly the same amount at the hub. United argues that this disparity makes American’s aggressive expansion unsustainable.
The tension follows a decisive shift in airport real estate that occurred in late 2025. Due to United’s faster post-pandemic recovery and higher schedule density, the carrier triggered a lease clause allowing it to acquire five additional gates in October 2025. Conversely, American Airlines was forced to surrender four gates due to lower utilization metrics.
Current airport data indicates the following gate distribution:
“We’re not going to allow them to win a single gate at our expense.”
, Scott Kirby, United Airlines CEO (via Reuters)
Despite the financial figures presented by United, American Airlines has launched a “scorched earth” scheduling strategy to reclaim its footing. Industry reports indicate that American has added approximately 100 daily departures to its Spring 2026 schedule. The goal of this volume increase is to improve utilization metrics enough to trigger a “claw back” of gates in the next annual allocation cycle.
In addition to schedule padding, American Airlines executed a strategic real estate acquisition in late 2025. Following Spirit Airlines’ bankruptcy proceedings, American purchased two gates for $30 million, securing access outside of the city’s standard allocation formula.
The competition has spilled over into regional route networks, creating a “tit-for-tat” scenario. When American announced new service to regional markets such as Erie, Pennsylvania, and the Tri-Cities in Tennessee in early January, United responded within 24 hours by announcing identical routes. This strategy effectively floods smaller markets with capacity, preventing either carrier from establishing a monopoly.
While passengers may benefit temporarily from the lower fares resulting from this capacity dumping, the long-term implications for O’Hare are complex. The aggressive “use-it-or-lose-it” rules were designed to ensure efficient use of public infrastructure, but they currently appear to be incentivizing airlines to fly potentially unprofitable schedules solely to hoard real estate.
Furthermore, this squabble is the prelude to the massive “O’Hare 21” expansion. The carrier that commands the most market share today will likely wield the most influence over the design and allocation of the upcoming Satellite 1 and Global Terminal projects. United’s “line in the sand” suggests they view 2026 not just as a battle for current gates, but as the deciding year for the airport’s future configuration.
Sources: Reuters
United Airlines CEO Draws “Line in the Sand” in Battle for O’Hare Dominance
The “Line in the Sand”: Financials and Gate Control
The 2025 Reallocation
American Airlines’ Counter-Offensive
The Route War
AirPro News Analysis
Frequently Asked Questions
Photo Credit: Hyoung Chang – The Denver Post
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