Ryanair cuts capacity in Estonia and Lithuania amid rising costs

Ryanair is reducing capacity in several European markets due to rising operational costs. The airline will cut 550,000 seats to Estonia and Lithuania this winter, representing a 25 per cent reduction in capacity. This decision follows a 30 per cent increase in airport charges in Lithuania and rising fees at Tallinn Airport. Consequently, Ryanair is shifting capacity to lower-cost destinations, including adding 40,000 seats to Riga, Latvia.

Further capacity reductions include 700,000 seats and 12 routes in Greece, and one million seats and 20 routes in Belgium. Despite these immediate cuts, the airline maintains a long-term growth strategy for the Baltic region, aiming to increase its fleet from seven to 16 aircraft by 2031.

Ryanair CEO Michael O'Leary has also addressed the impact of volatile jet fuel prices on the aviation industry. While Ryanair does not plan to levy a fuel surcharge, O'Leary predicts that competitors may increase airfares by 10% to 20% next summer to offset high oil costs. He anticipates increased consolidation within the European market, noting that loss-making carriers may face bankruptcy as fuel costs remain elevated.