Ryanair Slams Belgium’s Aviation Tax Hike: Economic Consequences Ahead

Ryanair Condemns Belgium’s Aviation Tax Hike: A Threat to Connectivity and Economy

Belgium’s decision to increase the aviation tax on departing passengers has sparked significant controversy, particularly from Ryanair, one of Europe’s largest low-cost carriers. The proposed tax hike, which could see a 150% increase, is expected to generate over €70 million in revenue, nearly double the €42 million collected in 2024. Ryanair has warned that this move could have severe economic and connectivity consequences, urging the De Wever government to reconsider its decision.

The aviation industry is a critical driver of economic growth and connectivity, especially in a post-pandemic world where recovery remains fragile. Brussels Zaventem Airport, Belgium’s primary aviation hub, has already seen a 20% rise in operational taxes since the pandemic, with passenger traffic still at only 87% of pre-COVID levels. This contrasts sharply with other European nations like Sweden, Hungary, and Italy, which are eliminating similar taxes to encourage air traffic and economic recovery. The Belgian government’s decision risks isolating the country’s aviation sector and pushing travelers to alternative hubs.

Ryanair has criticized the tax hike as hypocritical, arguing that it undermines environmental goals while prioritizing financial gain. While the tax on ordinary passengers is set to increase, private jets and connecting flight passengers will see their tax reduced from €10 to €5. This discrepancy raises questions about the government’s true intentions and its commitment to sustainability.

The Economic and Environmental Implications

The proposed tax increase has far-reaching economic implications. Ryanair argues that it will further hamper the recovery of Brussels Zaventem Airport, which is already struggling to regain pre-pandemic passenger numbers. The airline warns that higher taxes could push travelers to neighboring airports in countries with more favorable tax policies, leading to a loss of competitiveness for Belgium’s aviation industry.

From an environmental perspective, the tax hike appears counterproductive. While the government claims it aims to reduce short-haul flights to lower carbon emissions, Ryanair points out that the reduction in taxes for private jets and connecting flights contradicts this goal. Private jets are significantly more polluting per passenger than commercial flights, and connecting flights often result in higher overall emissions due to the additional takeoffs and landings involved.

Ryanair has suggested that the government should instead focus on imposing higher taxes on private and connecting flights, which are the biggest polluters. This approach would align more closely with environmental objectives while minimizing the impact on ordinary passengers and the broader economy.

“Unlike other EU countries like Sweden, Hungary, and regional Italy, which are abolishing aviation taxes and cutting airport charges to maintain competitiveness and stimulate traffic growth, the new Belgian Govt proposes increasing its aviation tax on ordinary passengers by up to 150%.” – Ryanair Spokesperson

Expert Opinions and Industry Context

Ryanair CEO Michael O’Leary has been vocal in his criticism of the tax hike, stating that it will have a detrimental impact on Belgium’s connectivity, traffic, jobs, and economy. He emphasized that other European countries are taking the opposite approach by reducing or eliminating aviation taxes to stimulate traffic recovery and growth. For example, Sweden, Hungary, and Italy have all implemented measures to make their airports more competitive, which contrasts sharply with Belgium’s decision.

Joëlle Neeb, Senior Media Relations Manager at Brussels Airlines, has also weighed in on the debate. She argues that imposing a tax on aviation without ensuring the collected funds are used to make the sector more sustainable is not the right approach. Neeb highlights the need for fleet renewal, increased use of Sustainable Aviation Fuel (SAF), and other measures to decarbonize aviation as more effective strategies.

The global aviation industry is at a crossroads, with countries grappling with how to balance environmental concerns with economic needs. While some argue that taxes can discourage short-haul flights and encourage more sustainable travel options, others see these taxes as counterproductive and harmful to the industry. Belgium’s decision to increase aviation taxes places it in the latter category, raising questions about its long-term impact on the country’s aviation sector and economy.

Conclusion

Belgium’s proposed aviation tax hike has sparked significant debate, with Ryanair leading the charge against what it sees as a short-sighted and counterproductive policy. The airline argues that the tax increase will harm Belgium’s connectivity, tourism, and employment while failing to achieve its stated environmental goals. The discrepancy in tax rates between ordinary passengers and private jets further undermines the government’s credibility on sustainability.

Looking ahead, the Belgian government faces a critical decision. Will it prioritize economic recovery and passenger convenience, or will it remain committed to a tax policy that risks isolating its aviation sector? The outcome of this debate will have far-reaching implications for Belgium’s economy, its role in the European aviation industry, and its ability to meet environmental targets. As other European nations move to reduce aviation taxes and stimulate growth, Belgium’s approach stands in stark contrast, raising questions about its long-term competitiveness and sustainability.

FAQ

Question: Why is Ryanair opposing Belgium’s aviation tax hike?
Answer: Ryanair argues that the tax increase will harm Belgium’s connectivity, tourism, and employment while failing to achieve environmental goals. The airline also criticizes the reduction in taxes for private jets and connecting flights as hypocritical.

Question: How does the proposed tax compare to other European countries?
Answer: Unlike Belgium, countries like Sweden, Hungary, and Italy are reducing or eliminating aviation taxes to promote air travel and economic growth, making their airports more competitive.

Question: What is the expected revenue from the tax hike?
Answer: The government expects to generate over €70 million from the tax, nearly double the €42 million collected in 2024.

Sources: Travel Radar, Aviation24, Ryanair Corporate