Ryanair Suspends Thessaloniki Operations Over High Airport Charges

Ryanair has announced it will suspend operations at its Thessaloniki base during the upcoming winter season, attributing the decision to high airport charges levied by Fraport Greece and Athens Airport.

The airline's cessation includes the withdrawal of three aircraft that operate in the region while simultaneously limiting its services at Athens Airport.

Ryanair cited a "catastrophic loss of connectivity" during the off-peak tourist season, attributing this directly to the excessive charges imposed by what it describes as a German-managed monopoly at the airports.

The suspension will result in a remarkable reduction of around 700,000 available seats, constituting a 45% decrease compared to the previous winter season. Additionally, Ryanair will cancel 12 routes across its network.

Although the Greek government introduced a substantial 75% reduction in the Airport Development Fee—cutting it from €12 to €3 per passenger—Ryanair noted that this reduction was not reflected in ticket prices, as the savings were absorbed by the airport operators.

Fraport Greece has upped its charges by more than 66% compared to pre-pandemic rates, further complicating the airline's operational viability in the Greek market as additional fee hikes loom for the winter season.

To offset these challenges, Ryanair has indicated it will pivot some of its operations to more competitive markets including Albania, regional Italy, and Sweden.

In a bid to boost the number of passengers traveling through Greece, Ryanair has presented the Greek government with a development proposal aimed at increasing traffic to 12 million passengers annually over the next five years. This ambitious plan includes adding 10 new aircraft and creating 50 new routes with an investment exceeding $1 billion.

This shift in strategy aligns with ongoing concerns surrounding the competitive landscape of European aviation, particularly as low-cost carriers grapple with rising operational costs exacerbated by airport charges.

The airline's decisions underline the ongoing challenges faced by budget carriers in maintaining profitability while navigating regulatory and financial pressures in high-cost markets like Greece.