Thessaloniki

Ryanair Cuts 700,000 Seats in Greece as Thessaloniki Base Closes in Major Blow to Winter Tourism

Greece’s tourism sector is facing a major setback after Ryanair confirmed plans to dramatically scale back its winter 2026 operations, including the closure of its Thessaloniki base and reduced activity at Athens International Airport. The move will remove approximately 700,000 airline seats from the Greek market, representing a 45% reduction compared with the previous winter season.

The decision marks one of the largest airline pullbacks Greece has experienced in recent years and raises serious concerns about the future of off-season tourism, regional connectivity, and affordable travel options across the country.

At the center of the dispute is a growing conflict over airport charges imposed by Fraport Greece and Athens International Airport, which Ryanair claims have made the market increasingly uncompetitive for low-cost operations.

Thessaloniki Faces Major Tourism and Connectivity Losses

The closure of Ryanair’s three-aircraft base in Thessaloniki is expected to have the most immediate impact on northern Greece. The airline plans to remove around 500,000 seats and suspend 10 routes serving major European markets including Germany, Sweden, and Italy.

Popular routes linking Thessaloniki with Berlin, Stockholm, and Venice are among those affected, reducing direct international access to one of Greece’s most culturally important cities.

For Thessaloniki’s tourism industry, the timing is especially difficult. Winter tourism has become increasingly important for hotels, restaurants, cultural venues, and local businesses seeking to extend economic activity beyond the summer season.

Ryanair had become a dominant player in the city’s international aviation market, accounting for nearly 90% of international seat capacity during the previous winter season. The withdrawal leaves a substantial gap that competing airlines may struggle to fill in the short term.

Industry stakeholders now fear reduced visitor arrivals during the low season could impact hotel occupancy rates, conference tourism, city breaks, and regional travel demand across northern Greece.

Airport Fee Dispute Intensifies

Ryanair has attributed the cuts directly to rising airport charges in Greece, accusing airport operators of failing to pass cost reductions on to airlines and travelers.

In late 2024, the Greek government reduced the Airport Development Fee for winter travel from €12 to €3 per passenger in an effort to stimulate year-round tourism and improve the country’s competitiveness during the off-season.

However, Ryanair argues that the intended savings did not reach passengers or carriers. According to the airline, airport operators retained the financial benefits instead of lowering operational costs or incentivizing additional winter routes.

The carrier also claims airport charges at Fraport-managed airports have risen significantly compared with pre-pandemic levels, while Athens International Airport is expected to introduce additional fee increases for Winter 2026.

These developments, Ryanair says, have made Greece less attractive compared with rival tourism markets competing aggressively for low-cost airline capacity.

Greece Risks Losing Ground in Year-Round Tourism

The reduction in Ryanair services highlights broader challenges facing Greece’s ambition to strengthen year-round tourism.

Although Greece remains one of Europe’s most popular summer destinations, officials and tourism authorities have spent years attempting to expand winter travel, cultural tourism, city breaks, wellness tourism, and conference travel to reduce seasonal dependence.

Affordable air connectivity is widely viewed as critical to sustaining that strategy.

With fewer low-cost flights available, travelers may increasingly choose alternative Mediterranean destinations offering cheaper fares and more extensive winter connectivity. This could impact not only visitor numbers but also local tourism spending, aviation jobs, and hospitality revenues.

Smaller cities and regional airports are particularly vulnerable because they rely heavily on budget carriers to maintain international accessibility during lower-demand periods.

Ryanair Redirects Aircraft to Competing Markets

As part of its restructuring strategy, Ryanair plans to redeploy aircraft to markets it considers more cost-effective and supportive of low-cost travel growth.

The airline identified Albania, Italy, and Sweden among the destinations benefiting from more competitive airport policies and stronger cooperation between governments and airport operators.

According to Ryanair, those markets have used tax reductions and airport incentives to stimulate passenger demand and encourage airline expansion, allowing carriers to maintain affordable fares while increasing connectivity.

The shift reflects an increasingly competitive European aviation environment in which airports and tourism authorities are actively competing for airline investment and route development.

Expansion Plans Put on Hold

Ryanair revealed that it had previously proposed a major long-term growth strategy for Greece that included increasing annual passenger traffic to 12 million travelers, introducing 50 new routes, and basing an additional 10 aircraft in the country over the next five years.

The airline estimated the expansion could generate approximately $1 billion in additional investment while supporting tourism growth across multiple regions.

However, Ryanair has now placed those plans on hold unless airport pricing policies change and winter fee reductions are fully passed on to airlines and consumers.

The airline warned that continued increases in operational costs could lead to further reductions in services if Greece fails to improve its competitiveness in the European low-cost aviation market.

Pressure Mounts on Greece’s Tourism Strategy

The scale of Ryanair’s winter cuts has intensified pressure on Greece’s tourism authorities and airport operators to reassess aviation pricing strategies ahead of future travel seasons.

Tourism leaders now face the challenge of protecting year-round connectivity while balancing airport revenue models and broader economic priorities.

For cities such as Thessaloniki and Athens, the loss of low-cost airline capacity threatens to slow tourism momentum at a time when international competition for travelers is becoming increasingly aggressive.

Whether Greece can regain lost capacity may depend on how quickly industry stakeholders respond to airline concerns and adapt policies aimed at supporting sustainable year-round tourism growth.

 

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