Ryanair has decided to shut down another European base, resulting in the cancellation of 12 routes. The budget airline recently announced the closure of its three-aircraft base in Thessaloniki and a reduction in capacity at Athens Airport for the upcoming winter season. Approximately 700,000 seats and 12 routes will be affected by these changes.
The airline attributed this move to the high costs imposed by Fraport, the German-operated monopoly overseeing airports in Greece. Ryanair expressed disappointment in the lack of competitiveness at Greek airports, particularly due to increased charges by Fraport Greece and Athens Airport. As a result, the airline has reallocated capacity to countries like Albania, regional Italy, and Sweden, where airports have passed on government tax reductions to passengers.
Despite not explicitly stating so, Ryanair hinted that the affected base and routes could potentially reopen after the 2026/27 winter season. The airline emphasized the importance of reducing airport charges and passing on tax cuts to passengers for sustainable growth in the aviation industry.
In response, Fraport Greece defended its position, claiming that Ryanair’s decision was solely based on commercial strategy and profitability considerations rather than airport charges or government fees. Fraport Greece highlighted its substantial investments in upgrading airports like Thessaloniki.
Ryanair has warned of scaling back its plans for Greece, including the launch of 50 new routes over the next five years, unless there are favorable changes in airport charges and tax policies. The airline urged for the passing on of the 75% Airport Development Fee reduction to passengers at all airports to promote investment and tourism.
Moreover, Ryanair has faced challenges in Germany due to high aviation taxes, leading to the closure of its Berlin operating base and a significant reduction in winter schedules to the German capital. The airline’s decision to relocate aircraft to other centers was driven by the escalating aviation taxes in Germany.
The aviation industry’s exemption from fuel duty and VAT has drawn scrutiny for potentially keeping airfares artificially low and contributing to increased CO2 emissions. This exemption has led to substantial growth in passenger numbers but has also raised environmental concerns.
As the aviation sector navigates challenges related to taxes and fees, Ryanair’s strategic decisions reflect the ongoing complexities faced by airlines in maintaining competitiveness and sustainability in a rapidly changing industry landscape.
