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Ryanair to Cut Belgian Flights Over High Taxes, Boost Slovakia and Italy Services
🇸🇰 Slovakia /Economy & Trade

Ryanair to Cut Belgian Flights Over High Taxes, Boost Slovakia and Italy Services

From SME · () Slovak

Translated from Slovak, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Ryanair plans to reduce flights from Belgium due to high taxes and operating costs, while increasing services in Slovakia and Italy.
  • The airline cited Belgium's "non-competitive markets with high taxes" as a reason for the shift.
  • Despite increased costs for fuel, maintenance, and personnel, Ryanair reported a 40% profit increase to 2.26 billion euros in the last fiscal year, carrying over 208 million passengers.

Ryanair, the prominent Irish low-cost carrier, is signaling a significant shift in its European network, announcing plans to scale back operations in Belgium while simultaneously expanding its presence in countries like Slovakia and Italy. The airline attributes this strategic move to Belgium's increasingly unfavorable business environment, characterized by what Ryanair terms "non-competitive markets with high taxes."

the company criticized the increase in taxes on air ticket fees in Belgium, even threatening to limit its services at the two largest airports in the country, Brussels Zaventem and Charleroi.

— RyanairRyanair's criticism of Belgian aviation taxes and its potential service reduction.

This decision comes despite Ryanair's robust financial performance. The company recently reported a substantial 40% surge in profits, reaching 2.26 billion euros for the last fiscal year ending March 31. This growth was fueled by an 11% increase in revenue to 15.54 billion euros, as the airline transported over 208 million passengers, a 4% rise year-on-year. Even with rising fuel costs, which the airline has hedged for the current year, and anticipated increases in maintenance and personnel expenses, Ryanair appears well-positioned financially.

the Irish carrier has secured 80% of its fuel needs for this year at a price of 67 US dollars per barrel.

— RyanairRyanair's fuel cost hedging strategy.

Ryanair's strategy highlights a broader trend in the aviation industry where airlines are increasingly sensitive to government policies, particularly taxation. By reallocating capacity to markets perceived as more supportive of aviation growth, Ryanair aims to optimize its network and capitalize on demand. The airline's financial director, Neil Sorahan, noted that while fuel cost protection is in place, overall expenses have risen significantly. However, the company remains optimistic about carrying 216 million passengers in the current fiscal year, underscoring its resilience and growth ambitions despite geopolitical and economic uncertainties.

the company's aviation fuel costs have increased by 'several hundred million euros'.

— Neil SorahanRyanair's financial director on increased operating expenses.
DistantNews Editorial

Originally published by SME in Slovak. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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