Ryanair Cuts Capacity in France by 13% Over Air Tax Increase

MT Newswires Live

Jul 30

Ryanair Holdings (RYAAY) said Wednesday it is lowering its capacity in France by 13% during the winter following the French government's decision to increase air tax by 180% in March.

The company said the reduced capacity will result in the elimination of 750,000 seats and the cancellation of 25 routes. It will also stop operations at Bergerac, Brive and Strasbourg airports, and cut capacity at various other French airports.

The company plans to redirect its capacity and investment in France to Sweden, Hungary or parts of Italy, where governments are removing air taxes, Ryanair Chief Commercial Officer Jason McGuinness said in a statement.

Ryanair shares were down 1.3% in recent trading.

Price: 62.08, Change: -0.81, Percent Change: -1.28

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