The Azores' short-term rental sector is warning that 2026 could be its worst on record, six months after Ryanair pulled out of the Portuguese archipelago at the end of March over what the airline called excessive airport charges.
The numbers tell a clear story. Between April and July, private accommodation in the islands recorded 72,746 fewer overnight stays than the same stretch the previous year — a 7.6% drop. Figures from the Azores Regional Statistics Service show year-on-year declines in private rentals almost every month since November, while hotels have stayed relatively steady. João Pinheiro, who heads the Azores short-term rental association (ALA), says owners are finishing the summer with lower revenue and record costs, squeezed by inflation, energy bills and wages.
The bigger problem is getting there. Since Ryanair left, only TAP and Azores Airlines fly between the islands and mainland Portugal, and Pinheiro says fares have jumped month after month as a result. He points to Madeira, which keeps three low-cost carriers flying year-round, while the Azores now has none. He believes other budget airlines would come if negotiations were led properly, whether by the tourism board or Turismo de Portugal.
The fallout is already visible. Some rental owners who spent years buying and renovating rundown buildings are now listing those properties for sale, cutting staff or freezing hiring. The regional government has downplayed the dip, arguing in July that the sector still grew revenue and profitability — a claim that mostly reflects hotel performance rather than the struggling rental market. Tourism secretary Berta Cabral has not commented on the Ryanair impact.
Pinheiro's answer is to rebuild low-season demand: more events, better digital promotion and outreach to markets willing to visit outside summer. In the meantime, travellers who book ahead should find winter availability easier — and possibly good value — in one of Europe's most rewarding island destinations.
