Ryanair says lack of competition in Germany is driving up fares

The German aviation market has become less competitive in the post-pandemic era, according to Ryanair Holdings Plc, as high airport fees drive up ticket prices and discourage discount specialists from expanding in Europe’s biggest economy.

The Irish budget airline will station nine aircraft in Berlin for its summer season serving 50 routes, which Eddie Wilson, chief executive officer of the main Ryanair unit, said is fewer than the airline would like. The muted approach is a reflection of Germany’s slow rebound, where capacity still stands at just 80% of pre-Covid levels, while Europe as a whole has bounced back to 130%, he said at a press conference in Berlin. 

“It seems to be government policy to jack up prices at major airports, protect the national carrier and snuff out competition,” Wilson said. “Germany will become very opportunistic for carriers, who will become less concerned about long-term connectivity.”

Ryanair has already abandoned Frankfurt, Germany’s biggest airport, because of fees that Wilson said can reach €50 ($55.18) per passenger. Discount rival EasyJet Plc pulled out of the popular Frankfurt-Berlin route in 2020, and has scaled back its presence in Berlin to 11 aircraft. Ryanair is focusing on regional airports like Memmingen and Baden-Baden in the south of Germany or Paderborn in the north, though growth at these sites is “minuscule” to the potential of Frankfurt, Wilson said. 

The airline doesn’t plan to add any aircraft in Berlin because it can earn higher returns elsewhere, Wilson said. As a result of reduced competition, ticket prices will remain high in Germany for the foreseeable future, he said. 

“If you have less of a thing the prices go up,” Wilson said. “The people who have lost are the German consumers.”