Ryanair’s reaction to the extra profit tax, which it calls idiotic, has arrived: the airline is canceling eight Budapest routes, Okosutas.hu noted.
On Wednesday, these destinations were removed from the schedule, so they will be closed from the winter schedule change, starting in October: Bordeaux, Bournemouth, Cologne, Kaunas, Krakow, Lappeenranta, Riga, Turin.
The list does not include those routes that would have stopped for the winter according to the original plan, such as the very popular summer destination Rimini. Ryanair has been selling tickets to these eight cities for a long time, and now it has decided not to launch flights there. According to the travel portal, the decision “is almost certainly a reaction to the passenger tax introduced by the Hungarian government and is considered a paper form”. According to Okosutas, “they apparently waited to see which routes are doing poorly based on bookings”, that is, where they cannot raise prices to such an extent that they can still fly there profitably.
On many routes, the flights are also reduced, but this is part of the normal winter schedule, and is also applied elsewhere on the network. Bank360.hu, which also reports on the flight suspension, also notes that Ryanair already indicated after the introduction of the flight ticket tax that the additional cost could result in flight cancellations.
At the beginning of June, the Hungarian government decided to introduce a new tax called extra profit tax in seven different sectors, including aviation. For airlines, this tax is HuF 3,900 per ticket, which they have to pay for trips after July 1st, even if the ticket was already sold before the introduction of the tax.