Ryanair cancels Hungary routes over windfall tax dispute

Ryanair announced Tuesday that it will cancel several routes through Hungary and cut flights on several more following a months-long dispute with the country’s government over a special windfall tax placed on airlines. The Ireland-based company’s CEO, Michael O’Leary, said at a press conference in Hungary’s capital that Ryanair had planned to launch 10 new routes through Budapest and base an additional airplane at its airport this winter. “Sadly, however, those plans have now fallen at the altar of the Hungarian government’s decision to impose a ludicrous and idiotic excess profits tax on the airline sector, which has reported record losses,” O’Leary said. Instead of expanding its presence in Hungary as planned to more than 5 million passengers next year, Ryanair will eliminate eight of its previously operating 53 routes through Budapest while imposing frequency cuts on seven more, he said. This will reduce the company’s yearly passenger load in Hungary from 4.5 million to under 4 million, he added. The decision came in response to Hungary’s government fining the low-cost airline more than 750,000 euros ($753,000) in August for alleged consumer protection violations. The fine came after the company raised ticket prices to cope with a tax on what the government calls “extra profits” of industries ranging from airlines to banks.<br/>