Ryanair to close its Berlin operating base – The Irish Times

The High Cost of Flying: Why Low-Cost Carriers are Exiting Germany

The aviation landscape in Europe is shifting as the tension between low-cost carriers (LCCs) and airport pricing reaches a breaking point. The recent decision by Ryanair to close its Berlin base is a stark example of how aggressive fee structures can drive major airlines away from key markets.

When airport charges and national taxes climb too high, the “low-cost” model becomes unsustainable. In Berlin, published airport charges have increased by 50% since the pandemic, with an additional 10% rise projected between 2027 and 2029. For airlines operating on thin margins, these increases are often the final straw.

This isn’t an isolated incident. The trend of exiting German hubs has been building for years, with previous closures in Frankfurt, Dusseldorf and Stuttgart resulting in the loss of 13 based aircraft, alongside the cessation of flights to cities like Dresden, Leipzig, and Dortmund.

Shifting Skies: The Rise of Low-Tax Aviation Hubs

As costs rise in one region, airlines naturally migrate to more competitive environments. We are seeing a strategic reallocation of assets toward EU states that have abolished aviation taxes or maintain lower operational costs.

Countries such as Sweden, Slovakia, Albania, and Italy are becoming primary targets for aircraft relocation. By moving fleets to these lower-cost airports, airlines can maintain their pricing strategies and protect their bottom line although continuing to serve the European market.

This migration creates a competitive imbalance. While some hubs struggle with shrinking regional flights, others experience a surge in traffic as LCCs move their bases to wherever the regulatory and financial environment is most welcoming.

The Impact on Passenger Volume

The consequences of these base closures are felt most by the passengers. The closure of a single base can lead to a massive reduction in available seating. In the case of Berlin, the move is expected to result in the loss of over 2 million Ryanair seats per year.

Traffic projections indicate a steep decline, with passengers potentially dropping from 4.5 million to 2.2 million by 2027. This highlights a critical trend: when airlines abandon, the connectivity of a city collapses, making it harder for the airport to establish itself as a major hub alongside competitors like Frankfurt and Munich.

The Domino Effect: Security and ATC Fees

While airport-specific fees often grab the headlines, the broader “broken” state of aviation costs involves multiple layers of taxation and service charges. The cost of operating in Germany is being driven up by more than just the landing fees.

• Security Fees: Costs have doubled from €10 in 2024 to €20 per passenger by January 2028.
• ATC Fees: Air Traffic Control fees have trebled, rising from €1 to €3.30 per passenger.
• National Taxes: High aviation taxes are often used to combat inefficiency, but they frequently result in decreased traffic.

These cumulative costs create a hostile environment for international airlines, many of whom have long complained that flying to and from German airports is simply too expensive.

Can Policy Shifts Save German Aviation?

Governments are beginning to realize the danger of losing LCCs. In an attempt to boost the sector, the German government approved plans on April 1st to reduce the air traffic tax starting in July, aiming to return it to May 2024 levels.

Still, the question remains: is a tax reduction enough when airport-specific fees continue to climb? For many airlines, the damage is already done. The reallocation of aircraft to other EU states is often a permanent move, as airlines seek long-term stability over short-term tax tweaks.

For more insights on how aviation costs affect your wallet, check out our guide on European Travel Trends or read about Ryanair’s official stance on airport fees.

Frequently Asked Questions

Why is Ryanair closing its Berlin base?
The closure is primarily due to excessive airport fees, which have risen by 50% since Covid, and high national aviation taxes in Germany.

Where are the aircraft being moved?
Aircraft are being relocated to lower-cost airports in EU states that have abolished aviation taxes, specifically Sweden, Slovakia, Albania, and Italy.

How does this affect passengers?
It leads to a significant reduction in flight availability and a loss of millions of seats per year, potentially reducing traffic from 4.5 million to 2.2 million passengers in Berlin by 2027.

Is the German government doing anything to stop this?
The government approved plans on April 1st to reduce the air traffic tax starting in July to help boost the aviation sector.