Ryanair Slashes 800,000 German Seats--Cites Punishing Taxes in Stunning Winter Pullback

GuruFocus
2025.10.16 15:13
portai
I'm PortAI, I can summarize articles.

Ryanair has announced a significant reduction in its operations in Germany, cutting 800,000 winter seats and canceling 24 routes due to what it describes as punitive aviation taxes and high access costs. The airline's Chief Marketing Officer criticized the German government for not fulfilling its promise to reduce regressive taxes and excessive fees, warning that the current cost structure threatens the competitiveness of Germany's aviation market. This move reflects Ryanair's strategy to focus on markets with lower fiscal burdens, as similar reductions are also occurring in France and other high-tax regions.

Ryanair Holdings Plc has taken a sharp step back in Germany, cutting 800,000 winter seats and canceling 24 routes to nine airportsincluding Berlin, Hamburg, and Dortmundas tensions rise over what it calls punitive aviation taxes and sky-high access costs. The move, announced Wednesday, underscores the Irish carrier's deep frustration with Germany's cost structure, which it says has made flying there grossly uncompetitive versus European peers like Sweden and Hungary, where governments are rolling back aviation levies.

Chief Marketing Officer Dara Brady didn't mince words, arguing that the newly elected German government has already fallen short of its pledge to ease what Ryanair views as regressive taxes and excessive airport fees. He urged Berlin to bring air traffic control charges, airport costs, and security expenses down to sustainable levelswarning that the current system risks stifling one of Europe's key aviation markets.

For investors, this latest retreat signals a continuation of Ryanair's broader strategy: prioritize capacity where governments foster cost competitiveness and scale back where fiscal burdens remain heavy. The cuts mean Germany will see fewer Ryanair flights this winter than last, following last year's 1.8 million-seat reduction and a 20% capacity trim at Berlin Brandenburg Airport. Similar pullbacks are underway in France and other high-tax markets, suggesting the carrier is reshaping its network to chase profitability rather than footprint.