Ryanair, Hungary’s No.1 airline, today (13^th Sep) called on the Hungarian Govt to explain why its idiotic “excess profits” tax was levied on the airline industry which has reported record losses over the last 2 years due to Covid and the Ukraine war. It makes no sense to impose an “excess profits” tax where “excess losses” are reported. All the Hungarian Govt has done with this “excess profits” tax, is raise flight costs for Hungarian passengers, reducing Hungary’s competitiveness, damaging tourism, connectivity, traffic, and jobs.

Ryanair is the only airline in Europe rapidly growing traffic and adding capacity in countries such as Austria, Croatia, Romania, and Slovakia, where lower costs and competitive charges are being offered. The Hungarian Govt is damaging its much-needed tourism and foreign investment by imposing this insane “excess profits” tax on a loss-making industry. Ryanair has already cancelled 8 routes and cut flights on a further 7 routes from its Budapest base this winter in direct response to this stupid “excess profits” tax.

Ryanair has appealed the baseless fine imposed by the Hungarian Consumer Protection Agency (CPA) which falsely claims that Ryanair’s decision to pass on this retrospective tax to passengers was “unlawful.” Their claim that the airline must “absorb” retrospective taxes and incur “excess losses”, is clearly in breach of EU law which allows airlines the freedom to set airfares and pass on taxes to consumers without any interference from national governments. Ryanair will take this appeal all the way to the EU court.

Ryanair Group CEO Michael O’Leary said:

“We deeply regret that we are not in Hungary today to announce new routes and further growth for Winter 22, as we are in many other European countries. The Hungarian Govt’s idiotic “excess profits” tax on the loss-making air transport sector (and Hungarian citizens/visitors) has done nothing but damage Hungarian tourism, connectivity, traffic, and jobs as evidenced by these severe cuts to our Budapest winter schedule, which were made in direct response to this ridiculous “excess profits” tax.

The only thing more ridiculous than the Hungarian Govt’s decision to impose an “excess profits” tax on the loss-making airline industry is the Hungarian CPA’s decision to impose a completely baseless fine, which was strangely announced by the Hungarian Justice Minister on Facebook even before Ryanair was notified. This doesn’t say much for the independence or integrity of the CPA! Ryanair had appealed this baseless fine imposed by the CPA which we will ultimately overturn before the EU Courts on the basis that EU law guarantees airlines the freedom to set prices without any interference from national Govts, and we are permitted by EU law to pass on retrospective taxes to consumers – including this idiotic “excess profits” tax.

We now call on the Hungarian Govt to stop punishing Hungarian families and abolish its idiotic “excess profits” tax on the loss-making airline sector immediately, before even more damage is done to Hungary air travel and tourism.”