Ponta Delgada, Portugal, April 29, 2026 (Lusa) – Portugal's car hire companies (ARAC) Azores and Madeira representative, has warned of a 30% drop in car rental demand following Ryanair's departure from the Azores.
"There is undoubtedly a decline, estimated at 30% compared to the same period last year. This April is proving weaker, and we are really feeling the absence of Ryanair. It is noticeable," Luís Rego told the Lusa agency.
The low-cost airline Ryanair abandoned its Azores operations on 29 March, citing "high airport taxes" and "inaction" from the Portuguese government.
According to the ARAC representative in the Azores, the absence of the low-cost carrier is a key factor, noting that the airline attracted a type of tourist who frequently rented cars and stayed in short-term rental accommodation.
He said that Ryanair's exit coincided with the Easter period, traditionally a quieter time for tourism, which worsened the impact. "We noticed this drop immediately during Easter, which is already a quieter period. Coincidentally, Ryanair's departure occurred during Easter week. We are seeing significantly lower bookings this month, naturally due in part to the Ryanair cut," he said.
While acknowledging that other factors might influence the decrease in rental demand, he told Lusa that "a large part of the drop relates to the absence of Ryanair." "We are noticing a definite decline. Now, whether it is solely because of Ryanair, we do not know. But it is a certainty that a large part of the drop is due to the absence of Ryanair, without a doubt," he said.
Regarding the summer, he anticipates increased activity in the rent-a-car sector during the peak season. "Summer is always summer, and there will be more flights and activity. Naturally, during the high season, the impact of Ryanair's departure from the Azores will be less significant," he said.
However, he said that the impact of the airline's exit would persist. "The greatest concern should be for next winter, because during that period we are left only with SATA and TAP," he said. Stressing that Ryanair "always added value" to Azorean tourism, he said that "the next winter is long, from October to March, and if nothing is done, the percentage of the decline will be even greater."
In January, Ryanair CEO Michael O'Leary told Lusa in an interview that the airline would close its Azores base at the end of March, rejecting any possibility of a U-turn, which ultimately took place. The regional government of the Azores attempted, without success, to convince the company to maintain its regional operations, which began in 2015.
APE/RYOL // AYLS
Lusa
