Summary
- Ryanair CEO Eddie Wilson believes high taxes and airport fees, combined with lower capacity, have ended the era of cheap flights in Germany.
- Wilson criticized political interference for rising costs and ticket prices.
- Ryanair is withdrawing a quarter of its Germany-based fleet, and other airlines, like easyJet, are also losing faith in the German market.
Ryanair CEO Eddie Wilson believes the era of cheap flights in Germany is over due to high taxes, fees and lower capacity. The Irish low-cost carrier is withdrawing a quarter of its Germany-based fleet, and isn’t the only airline pulling out either.
Prices going through the roof
Speaking to German media outlet Frankfurter Rundschau, Wilson criticized the country’s expensive airport fees and taxes, claiming that political interference has played a major role in rising costs and ticket prices.
Photo: Ryanair
Wilson said,
“The German market is artificially restricted by politics, which is why prices there are going through the roof. Things are different in other parts of Europe. When you have less of something, the price goes up. And that’s what’s happening in Germany right now.”
Germany has one of Europe’s highest domestic airfare taxes at 19%, along with expensive airport fees and security charges. Wilson believes that if the German government does nothing to reduce the fees, the country will lose out on an estimated 8.5 billion euros ($9.2 billion) in GDP.
Germany’s capacity will be around 20% lower than pre-pandemic levels over 2023, with a particular dearth in domestic services. While international capacity is lagging 16% behind 2019, domestic seat capacity will be almost 50% lower. On the contrary, other major European markets – such as Italy, Spain and the UK – are trending higher than pre-COVID times.
Germany no longer attractive
Ryanair isn’t the only airline losing faith in the German market. Fellow budget carrier easyJet plans to pull around half of its fleet from the country, instead repositioning aircraft in countries with more favorable incentives.
Photo: Tom Boon | Simple Flying
In terms of Ryanair’s future growth priorities, Wilson says Germany is “at the bottom of the list” if things remain the same, adding that “airlines will not increase their capacity” when costs are much cheaper in other countries.
In early 2022, Ryanair announced the closure of its popular Frankfurt (FRA) base, citing the airport’s rising fees and Germany’s high passenger taxes. The airline still has several remaining bases in the country but has seen Germany drop from its fourth-largest market in 2019 to sixth place this year. Nonetheless, the LCC is managing just fine without a German recovery – handling a record monthly passenger total this August – and believes it will hit its target of 183.5 million annual passengers served by March 2024.
Fees may rise again
German authorities are reportedly mulling over a proposal to hike airport security fees next year, something Wilson believes would be “disastrous” for passengers in Germany.
Photo: Jokue-photography | Shutterstock
A Ryanair-commissioned study on the economic impact on Germany said the country will lose up to 16 million passengers each year if nothing is done to reduce fees, let alone raise them.
Do you think the era of cheap flights in Germany is over? Let us know your insights in the comments.
Source: Frankfurter Rundschau