Europe’s biggest budget airline announced Friday it will close its operational hub at Thessaloniki airport in Greece during the upcoming winter season, citing excessive fee increases by the airport management company.
Jason McGuinness, Ryanair’s Chief Commercial Officer, told media in Athens that negotiations with Fraport, the German company operating several Greek airports, have reached a dead end over cost disputes.
“Fraport Greece continued to increase charges, which are now 66% above pre-Covid level,” McGuinness stated during the press conference.
However, Fraport Greece strongly disputed these claims in a statement released later Friday, calling any connection between their pricing and Ryanair’s departure “entirely unfounded.”
“The decision to reduce winter operations at Thessaloniki Airport Makedonia is exclusively related to Ryanair’s commercial strategy, business model, and profitability considerations,” the airport operator responded.
The Irish airline plans to withdraw three jets currently stationed in Thessaloniki, eliminating half a million passenger seats and discontinuing 10 flight paths during the winter months.
Ryanair operates 95 bases across Europe where it stations aircraft and crew. The company recently made a similar decision to abandon its Berlin operations last month, also citing increased taxes and fees.
McGuinness declined to specify whether the closure would result in layoffs among the 100 employees currently working at the Thessaloniki facility.
The airline is also reducing service at Athens airport this winter, creating a total loss of 700,000 seats and 12 routes throughout Greece. Additionally, operations at Chania and Heraklion airports will be suspended during slower travel periods.
The displaced aircraft will be moved to Albania, Italy and Sweden, “where airports have passed on their government’s aviation tax savings, resulting in more connectivity, tourism and jobs this winter,” McGuinness explained.
The executive warned that Ryanair’s departure could be “devastating for the city” of Thessaloniki, noting the airline supplied 90% of the city’s international flight capacity in the previous year.
Greece relies heavily on tourism as a cornerstone of its economy, particularly as one of the Mediterranean’s premier summer vacation destinations. Local Greek news outlets had predicted this closure, prompting worry from city officials about potential damage to tourism employment in the region.
