End of cheap flights? Ryanair cuts millions of seats in retaliation against new fees

End of cheap flights? Ryanair cuts millions of seats in retaliation against new fees

Ryanair announced a significant reduction in its operation in Belgium, confirming the cut of 2.1 million passenger seats, as it progresses The Brussels Times portal. The measure, which will come into force between 2026 and 2027, comes as a direct response to the increase in the tax burden on aviation in that country.

This decision represents a serious blow to air connectivity in Central Europe, affecting both tourism and business travel. According to a statement from the Irish airline, the reduction in supply is an inevitable consequence of government policies that penalize the sector with new fees.

The origin of the conflict: higher taxes

At the center of the contention is the decision by the Belgian government and local authorities to increase operating costs for airlines. Ryanair specifically points the finger at the increase in the federal boarding tax and the introduction of new local taxes at the airports where it operates.

According to the carrier’s statement, these measures make maintaining the current volume of traffic unsustainable. Charleroi airport, one of the company’s main hubs and widely used by the Portuguese community, will be one of the most affected by this forced restructuring.

The press writes that the introduction of these fees aims to respond to environmental and noise concerns, but the carrier considers them disproportionate. The company argues that these additional costs end up being borne by passengers, contradicting the low-cost model that democratized travel in Europe.

Ryanair’s response and investment diversion

Michael O’Leary, the CEO of Ryanair, spared no criticism of the Belgian authorities, classifying the new fees as counterproductive measures for the economy. The company’s strategy now involves moving its planes to countries that adopt tax policies that are more favorable to commercial aviation.

According to the same source, markets such as Sweden, Italy and Hungary are following the opposite path, abolishing or reducing taxes to attract tourism. It is to these destinations that Ryanair intends to transfer the capacity removed from Belgium, rewarding governments that encourage air traffic.

This “flight” of assets demonstrates the mobility of the company’s business model. low-costwhich can change its operational base quickly. The warning left by the company is clear: investment and fleet growth will be allocated where costs allow to keep fares low.

Impact on connections and ticket prices

The reduction of 2.1 million seats will have an immediate effect on the law of supply and demand. With fewer flights available and the same or higher operating costs, it is expected that the average price of tickets to and from Brussels will increase considerably in the coming years.

For Portuguese passengers, this news is particularly relevant, given the strong migratory and tourist flow between Portugal and Belgium. The reduction in flight frequency could make it difficult for the diaspora to travel and make leisure visits to the European capital more expensive.

Industry analysis indicates that the least profitable routes will be the first to be eliminated or reduced. This could mean fewer available times and less flexibility for those traveling for work or to visit family, requiring more advanced travel planning.

A changing scenario in European aviation

This episode in Belgium reflects a broader trend of tension between the environmental goals of European governments and the economic accessibility of air transport. While some countries increase taxation to disincentivize short-haul flights, airlines are struggling to maintain profit margins.

The stance serves as a warning to navigation for other countries considering similar measures. The carrier reaffirms that it will not hesitate to cut capacity in other markets if there are rate increases that it considers unjustified or harmful to the business.

Towards the end of the statement, it becomes clear that the era of ultra-cheap travel may be under threat in certain regions of Europe. The sustainability of the low-cost model depends on high volumes and low costs, an equation that becomes difficult to balance with the new fiscal panorama.

It remains to be seen whether this pressure measure will lead to a retreat by the Belgian authorities or whether the capacity reduction will be permanent. Until then, consumers should prepare for a market with fewer options and potentially higher prices on affected routes.

Also read:

News Room USA | LNG in Northern BC