Ryanair Slashes Belgian Flights, Expands in Germany as Tax Policies Diverge

DUBLIN, January 19, 2026 – Europe’s largest low-cost carrier, Ryanair, is executing a dramatic shift in its European network, punishing Belgium with severe capacity cuts while rewarding Germany with new growth. The moves, announced last week, are a direct response to opposing government tax policies, underscoring the airline’s aggressive strategy of shifting aircraft and passengers to the most cost-competitive markets.

Belgium Faces Loss of Over 2 Million Seats

On January 14, Ryanair CEO Michael O’Leary declared the airline would cut 1.1 million passenger seats from its operations at Brussels South Charleroi Airport (CRL) in 2026, with a further 1.1 million reduction planned for 2027. The decision is a retaliatory measure against what O’Leary labeled “silly tax rises” by both the Charleroi City Council and the Belgian federal government.

The Charleroi Council plans to introduce a new €3 ($3.50) local passenger tax starting April 2026. Simultaneously, the Belgian government intends to raise its national aviation tax from €2 to a flat €10 per departing passenger by January 2027—a five-fold increase. Ryanair, which carried 11.6 million passengers to and from Belgium in 2025, warned these taxes would reduce its Belgian traffic to 10.6 million in 2026 and just 9.6 million in 2027.

“What these silly politicians don’t understand is that aircraft and passengers are mobile,” O’Leary stated. “If Belgium wants to tax passengers, they will simply switch to lower-cost, non-tax destinations… Belgium’s loss will be to the gain of these lower-cost, tax-cutting states.”

Germany Gains 300,000 Seats After Tax Cut

In stark contrast, Ryanair announced it would reintroduce 300,000 seats and launch 11 new routes in Germany for the summer 2026 season. This expansion follows the German government’s decision to reduce its air traffic tax from July 2026 and freeze air navigation charges.

Ryanair CEO Eddie Wilson welcomed the move as a “sensible step” but noted Germany still lags behind more competitive markets like Sweden, Hungary, and Italy, which have abolished aviation taxes entirely. The growth will be focused on cost-competitive airports like Cologne Bonn, Weeze, and Memmingen, while capacity will continue to be cut at higher-cost airports such as Berlin and Hamburg.

FY25 Financial Performance: Profit Declines Amid Challenges

The strategic maneuvering comes as Ryanair navigates a complex financial landscape. The airline group recently reported its full-year results for the fiscal year ending March 31, 2025 (FY25), showing a decline in profitability despite increased revenue.

Management cited increased fuel costs, air traffic control disruptions, and intense competition as primary factors pressuring margins. The group maintains a strong balance sheet with a young fleet of over 640 aircraft and more than 300 new Boeing 737s on order.

Frequently Asked Questions

Why is Ryanair cutting flights in Belgium?

Ryanair is reducing capacity in direct response to planned increases in passenger taxes. The Belgian federal government aims to raise its aviation tax to €10, and the Charleroi City Council is adding a new €3 local tax. Ryanair argues this makes Belgium uncompetitive compared to other European countries that are cutting or abolishing such taxes.

Where is Ryanair growing instead?

The airline is shifting growth to markets with favorable tax policies. Germany, which is reducing its air traffic tax, will see 300,000 additional seats and 11 new routes. Ryanair has also highlighted Sweden, Hungary, Slovakia, Italy, and Albania as attractive, zero-tax markets for future investment.

What was the outcome of Ryanair’s recent antitrust fine in Italy?

In December 2025, the Italian Competition Authority (AGCM) levied a €256 million fine against Ryanair for alleged abuse of a dominant position in ticket sales. Ryanair has instructed its lawyers to immediately appeal the ruling, calling it “legally flawed” and citing a previous Milan court ruling that found its direct distribution model benefits consumers.

How does Ryanair’s financial health look after FY25?

While net profit declined year-over-year, Ryanair remains profitable and financially robust. It generated €1.61 billion in net income, carries minimal net debt, and has a strong cash position. Analysts’ average price target for the stock suggests a potential upside from current trading levels.