The Dublin Airport Authority (DAA) has distanced itself from the air travel tax announced by the Minister for Finance in last week's budget - stating it is a "government tax that has been introduced to boost the government's revenues".

A spokesperson for DAA said: "This new tax is not linked in any way to the airport charges at Dublin, Shannon and Cork Airports that help pay for the facilities at those airports and the range of aviation, security and safety services provided by them.

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"Dublin, Shannon and Cork airports are funded entirely by a combination of these airport charges - paid by passengers, revenues from their own commercial activities and borrowings."

The airport charge at Dublin Airport is determined by the Commission for Aviation Regulation and currently stands at a maximum of €14.60 per departing passenger or just over €7 for each leg of a return journey.

The airport charge paid by passengers at Dublin Airport is the lowest at any major airport in Europe.

DAA said it is carrying out a detailed analysis of the possible impact of the current economic environment on passenger traffic through its airports, and how this might affect the delivery timeframe for some planned infrastructure.

"It is too early to predict what impact the new Government tax may have on overall traffic volumes," a spokesperson added.

(PR/JM)