RyANAIR's CEO sparks fear among travelers - 'German airline industry crash'
Ryanair, Europe's largest low-cost airline, is calling for the complete abolition of the German air traffic tax and associated fees, as it perceives these costs as too high and detrimental to the recovery and growth of German air traffic[1]. The airline's CEO, Eddie Wilson, has emphasized that the high costs imposed by Germany are putting its major airports at a competitive disadvantage compared to other European countries like Ireland, Hungary, and Poland, which have reduced or abolished similar taxes and seen passenger traffic exceed pre-pandemic levels by over 100%[1].
If the German government meets Ryanair's demands by abolishing the aviation tax and lowering fees, the airline is prepared to double its passenger traffic in Germany to 34 million per year and invest around $1 billion in new aircraft, routes, and jobs[1]. This would significantly expand Ryanair’s footprint in Germany and stimulate the aviation market there, promoting faster recovery and growth.
The German government, recognizing industry pushback, including from Ryanair, plans to roll back a 20% increase in the aviation tax introduced in May 2024 before summer 2026 to reduce ticket costs and restore routes that have been cut due to high operational costs[3]. However, this partial reduction is not sufficient for Wilson, who compares Germany's high aviation taxes to countries like Sweden, Hungary, and parts of Italy where they have been abolished[1].
In France, major delays have been reported by Ryanair due to staff shortages, strikes, and the "inadequate organization" of French air traffic control[2]. These issues have not been addressed, adding to Ryanair's concerns about the high costs and inefficiencies in the European aviation sector.
The aviation tax in Germany currently amounts to 15.53 euros for holidays within the EU and 70.83 euros for journeys over 6000 kilometers[2]. Chancellor Friedrich Merz has agreed to a reduction in the aviation tax, but this is not sufficient for Wilson, who offers an investment of three billion US dollars in exchange for the abolition of the aviation tax in the 2026 German budget and a reduction in aviation security charges[2].
If the German government agrees to Wilson's conditions, the number of Ryanair passengers could double to 34 million. The proposed investment includes new aircraft, around 1000 new jobs, and a "significantly expanded route network". However, if the aviation tax is not abolished, Wilson warns of the "collapse of the German aviation market".
Ryanair's stance aligns with other countries’ experiences where removing such taxes led to rapid growth. However, the final outcomes depend on the government's full compliance with Ryanair's demands and the effective timing of tax rollbacks. The situation suggests that Germany is moving towards easing the tax burden on aviation, which could enable Ryanair to expand operations and investment significantly, thereby increasing passenger numbers and rejuvenating the market.
This development could potentially impact camping holidaymakers, as Ryanair may significantly cut flight plans across Germany. Furthermore, Ryanair threatens significant cuts in Spain if costs are not reduced. The aviation tax is a potential concern for the German aviation market and travelers, as it may lead to significant cuts in flight plans.
References: 1. BBC News, 2025 2. The Local, 2025 3. Deutsche Welle, 2025
- If Ryanair's demands in Germany are met, such as the abolition of the aviation tax and lower fees, the airline plans to double its passenger traffic, invest $1 billion, and create 1000 new jobs, potentially stimulating the aviation market and promoting faster recovery and growth.
- Compared to other countries like Sweden, Hungary, and parts of Italy where aviation taxes have been abolished, Chancellor Friedrich Merz's partial reduction of the German aviation tax is not sufficient for Ryanair's CEO, Eddie Wilson, who has offered a $3 billion investment in exchange for the complete abolition of the tax in the 2026 budget and a reduction in aviation security charges.
- The potential impact of the aviation tax on travelers and camping holidaymakers in Germany could be significant, as Ryanair threatens to cut flight plans across the country if costs are not reduced, similar to the potential significant cuts in Spain if costs remain high.
