Ryanair will cut flights (Image: Getty)
Ryanair is shutting down another European base, resulting in 12 routes being axed.
Over the weekend, the budget carrier confirmed the closure of its three-aircraft Thessaloniki base and capacity reductions at Athens Airport for the forthcoming winter period. The airline says 700,000 seats and 12 routes will be eliminated as a consequence.
“This devastating loss in off-peak winter connectivity is the direct result of the hopelessly uncompetitive costs charged at the German-run Fraport Greece monopoly and Athens Airport,” the Irish carrier announced.
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Ryanair has also pulled its aircraft from Chania and Heraklion.
While Ryanair hasn’t explicitly stated this, its announcement implies the base and routes may resume operations following the conclusion of the 2026/27 winter season.
“The Greek government made the wise decision to reduce the Airport Development Fee (ADF) by 75% (from €12 to €3 per passenger) from November 2024, which should have directly stimulated year-round connectivity and tourism across Greece. However, most Greek airports, particularly those run by Fraport Greece, refused to pass the tax cut onto passengers and instead have pocketed the tax cut for themselves.
Since then, Fraport Greece have continued to increase charges, which are now +66% above their pre-Covid levels. Likewise, Athens Airport will hike charges this Winter,” Ryanair’s statement continued.
“Consequently, Greek airports are no longer competitive in the off-peak shoulder and Winter months, when the tourism industry’s reliance on low-fare connectivity is most acute. Ryanair has therefore been left with no choice but to reallocate capacity to more competitive countries like Albania, regional Italy, and Sweden, where airports have passed on the savings from Govt. tax reductions.”
The decision represents the latest effort to pressure governments and airports into reducing Ryanair’s tax burden.
Fraport, which manages 14 airports across Greece alongside other prominent European travel hubs including Frankfurt, has pushed back against the move. In a statement, the company claimed Ryanair’s decision is “exclusively related” to the carrier’s commercial strategy and profitability considerations.
“Any claims linking this decision to airport charges or the airport development fee imposed by the Greek state are entirely unfounded,” it adds. Fraport Greece has ploughed over €100 million (£86 million) into upgrading Thessaloniki, the statement added.
Ryanair has warned it may scale back its ambitious expansion plans for Greece, which had involved launching 50 new routes over the coming five years.
“However, this growth can only be delivered if airport charges are frozen and the 75% Airport Development Fee reduction is passed on to passengers at all airports. Regrettably, Greece will continue to miss out on investment opportunities, tourism, and traffic development until Fraport Greece and Athens abandon their shameless practice of pocketing this tax cut,” the Ryanair statement continued.
Last month, Ryanair urged the Austrian Government to scrap its €12 aviation tax by May 1 amid fears it could trigger a “decline in airlines, routes, and traffic serving Austrian airports”. The carrier highlighted that the €12 levy has rendered “Austria uncompetitive”, as nations including Albania, Italy, and Slovakia have chosen to abolish aviation taxes, reduce ATC fees, and introduce growth incentive schemes to help lower airport costs for airlines. While Ryanair’s executives may object to the levy, the aviation sector has historically enjoyed substantial tax advantages. Even today, jet fuel remains exempt from fuel duty, with no VAT charged either. This stands in stark contrast to other forms of transport. For motorists in the UK, petrol attracts a duty of 52.95 pence per litre, plus 20% VAT.
“Aviation’s exemption from fuel duty and VAT appears more like an indirect subsidy that allows airfares to be kept artificially low. The absence of tax has helped to fuel passenger growth and the sector’s CO2 emissions have increased 125% since 1990. Over the same period, the UK’s overall emissions decreased by 43%,” writes the Aviation Environment Federation.
Meanwhile, Ryanair has announced it is closing its Berlin operating base and slashing its winter schedule to the German capital by half, citing spiralling aviation taxes in the country. The Irish budget airline said the redeployment of seven aircraft to alternative hubs would see its Berlin passenger numbers plummet from 4.5 million to 2.2 million annually.
This story originally appeared on Express.co.uk
