Ryanair is withdrawing from three regional French airports and cutting 25 routes following a 180% airfare tax hike, the airline announced in late July. The low-cost carrier’s French route cuts come amid rising costs in the airline industry, with Ryanair shifting its commercial focus toward markets with lower charges. The government promised no further airline taxation, but the carrier is calling for a full policy rollback to pre-March levels.
Ryanair: ‘Astronomical’ Tax Risks Hurting Competitiveness and Investment
From this winter, Ryanair plans several French route cuts from Brive, Bergerac and Strasbourg regional airports if the airfare tax increase remains in place. The change would affect 25 destinations and 750,000 seats, resulting in a 13% winter operation reduction, the airline said last month. Ryanair’s Chief Commercial Officer (CCO), Jason McGuinness, outlined the short-term strategy for France:
“Unless the government changes course and abolishes this unfair air tax, Ryanair’s capacity and investment in France will inevitably be redirected to more competitive European markets such as Sweden, Hungary or parts of Italy, where governments are actively removing air taxes to stimulate traffic, tourism, employment and economic recovery.”
Since March 1, 2025, the French TSBA solidarity tax on airplane tickets has risen, with economy-class increasing from €2.63 to €7.40. for short-haul, €7.51 to €15 for medium-haul, and €7.51 to €40 for long-haul flights. For low-cost carriers which rely on lower fares to attract price-sensitive travellers, higher air taxes mean a larger share of the ticket price goes to taxes, which affects demand and ultimately the airline’s margins and financial sustainability. Initially, the airline announced in January that it would cut 50% of its French operation, but later settled on a 13% reduction.
Ryanair CEO Mike O’Leary called the tax hike “excessive”, saying the government’s handling of business and economic potential was forcing the airline to pull back some of its investment in the French aviation market. In an interview with a French publication, he said that the French government was “shooting itself in both feet.” McGuinness added:
“It is unacceptable that a major European country like France is falling so far behind the rest of the EU, with traffic still below pre-Covid levels, because of excessive government-imposed taxes and security charges, which are rendering many French regional routes unprofitable, particularly in winter.”
They estimated that the tax increase could potentially cost the carrier €108 million per year.
Following Ryanair’s response, French government officials promised to halt further air tax hikes. Philippe Tabarot, the French transport minister, told Politico that he will make sure that the next finance bill does not include any new increases, believing these taxes to have reached a ceiling. However, Ryanair is calling for a full rollback and is using its business model, adjusting capacity quickly, in response to rising costs and market changes.
Network Flexibility as Leverage
French government officials promised to halt further tax increases but have not announced plans to fully roll back the policy. A recent global solidarity proposal has recommended imposing ‘premium’ levies on airline travel worldwide, signalling a continuing trend in air taxation. Read more here.
Ryanair is to reduce flight capacity in response to airline tax hikes, sending a clear signal to governments. The airline pledged to invest $2.5 billion in new aircraft, claiming this could increase annual passenger numbers by more than 30 million a year and create over 700 jobs to support post-COVID 19 recovery, if the French government reconsiders the recent air tax increase.
Where the airline has scaled back operations at European hubs with high air taxes
Ryanair is not only planning French route cuts but is also significantly reducing capacity and withdrawing from major European hubs:
- Germany saw flights cut, with bases in Dortmund, Dresden and Leipzig closing entirely and Hamburg operations reduced by 60%.
- Spain’s summer schedule cuts 800,000 seats for 2025 as Ryanair cites high fees and limited growth incentives from airport operator Aena. The. The carrier pulled out of Jerez and Valladolid, removed one aircraft from Santiago de Compostela, cutting capacity there by 28%, and reduced flights at Vigo (61%), Zaragoza (20%), Asturias (11%) and Santander (5%).
- The United Kingdom’s capacity is planned to be reduced by up to 10% in 2025, potentially cutting passenger numbers by 5 million annually. The airline attributes the cuts to increases in Air Passenger Duty (APD).
- Denmark saw Ryanair close its Billund base and end flights to and from Aalborg by March 2025, following the introduction of a new aviation tax starting January this year.
- Italy saw one aircraft removed from its Rome Fiumicino base this summer, blaming rising airport costs and municipal surcharges introduced back in April.
Ryanair has used similar capacity adjustments before, such as in 2009 when it reduced flights from Dublin in response to Ireland’s travel tax.
Redirecting investment to more competitive European markets
Ryanair’s pragmatic cost management includes shifting capacity and investment to other European markets, reducing or removing air taxes to boost connectivity and economic growth.
In March 2025, Ryanair announced a record summer schedule for Budapest, attributing it to Hungary’s decision to scrap aviation taxes. The airline is investing $1 billion, basing 10 aircraft in the city, launching four new routes, and expects annual passenger traffic of 5.6 million, which is a 13% increase.
The airline is boosting its operations in Sweden this summer following the government’s decision to abolish the aviation tax starting July 1, 2025. It is investing $200 million, adding two Boeing 737 aircraft at Stockholm Arlanda and Gothenburg bases and raising its Swedish fleet by 33%. Ryanair is launching 10 new routes, bringing its total to 81 routes to and from Sweden, and is creating 60 local jobs for pilots, cabin crew, and engineers.
Ryanair’s Route Cuts Put Pressure on France’s Secondary Airports and Regional Links
The low-cost carrier’s French route cuts and withdrawal from airports could significantly impact local connectivity.
Bergerac Dordogne Périgord airport relies heavily on Ryanair for UK and Ireland connections, namely Bournemouth, Bristol, East Midlands, Liverpool, Edinburgh, and London Stansted. The airline’s exit could reduce annual traffic by 7%, or 18,000 passengers, threatening the airport’s viability, according to the Dordogne Chamber of Commerce and Industry (CCI). The CCI President said:
“If Ryanair decides to follow through on its threat and leaves Bergerac for good, the airport may face closure.”
Brive Airport will lose Ryanair’s London-Stansted service. In Strasbourg, a major tourist hub serving flights to Porto and Agadir, further reductions in Ryanair operations could weaken regional connectivity, limiting travel options and affecting the local economy and businesses.
The cuts could also increase reliance on and tourist influx in larger hubs like Bordeaux or Paris, affecting regions popular with British tourists like Dordogne. Long-term impacts could deter investments and cost local aviation jobs if no alternative emerges.
As air taxes rise across Europe, governments like France face a tough balance between global solidarity, climate goals, revenue needs and supporting aviation growth. However, airlines will continue to use network agility to manage costs, turning connectivity into a form of leverage in policy debates. This ongoing tension between public policy and the aviation sector will shape the future of European aviation for years to come.
For more insights into how these policies affect aviation and airlines in the European markets, stay informed with Travel Radar.
