Ryanair, Europe’s largest low-cost carrier, has decided to close its Billund base. The closure involves removing two aircraft and stopping all flights to and from Aalborg by March 2025. This decision follows the Danish government’s implementation of a controversial aviation tax starting in January 2025. The new tax, which charges up to DKK 50 per passenger, makes Denmark less competitive for airlines.

Ryanair’s choice comes after Billund failed to secure a competitive long-term deal. Denmark still struggles to recover its pre-pandemic traffic, remaining at just 95% of 2019 levels. The aviation tax is likely to worsen this situation, impacting Denmark’s connectivity, tourism, and economy.

The tax has already caused a significant setback, with over 1.7 million seats and 32 routes lost. Ryanair will move these routes and aircraft to more competitive locations within its network. This shift is expected to lead to more job losses and missed investments, especially in regional airports like Billund, which depend on affordable air travel for economic growth.

Ryanair’s move underscores concerns that Denmark’s high aviation tax will hurt its economic recovery and connectivity. In contrast, countries like Sweden, Hungary, and Italy have abolished such taxes to boost air traffic and economic growth. Ryanair’s decision highlights the urgent need for governments to reconsider the harmful effects of aviation taxes on airlines and the economy.

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