By Lefteris Papadimas and Kalliroi Pappa
ATHENS, May 8 (Reuters) - Ryanair will close its operating base at Greece's Thessaloniki airport this winter and cut the number of flights in and out of the city after airport operator Fraport hiked annual fees, a senior executive said on Friday.
Speaking to reporters in Athens, Ryanair's Chief Commercial Officer Jason McGuinness said there was no progress in talks between the low-cost carrier and Fraport, which has raised charges at a number of Greek airports.
"Fraport Greece continued to increase charges, which are now 66% above pre-Covid level," McGuinness said.
Fraport Greece said any claims linking Ryanair's decision to airport charges or the Airport Development Fee (ADF) imposed by the Greek State are entirely unfounded.
"The decision to reduce winter operations at Thessaloniki Airport Makedonia is exclusively related to Ryanair’s commercial strategy, business model, and profitability considerations," Fraport said in a statement later on Friday.
Ryanair will remove three aircraft based in Thessaloniki, cutting 500,000 seats and 10 routes this winter.
The Irish carrier, Europe's largest by passenger numbers, has 95 operating hubs around the continent where it keeps aircraft and bases cabin crew. It also announced the closure of its base in Berlin last month over higher fees and taxes.
McGuinness did not say if the move would lead to job cuts among the 100 people who work at the Thessaloniki base.
Capacity is also being cut at Athens airport for the upcoming winter, resulting in a combined loss of 700,000 seats and 12 routes across Greece.
Operations at Chania and Heraklion airports will also be suspended during off-peak months, McGuinness said.
Aircraft will be reallocated to Albania, Italy and Sweden, "where airports have passed on their government's aviation tax savings, resulting in more connectivity, tourism and jobs this winter," McGuinness said.
Ryanair's exit from Thessaloniki could be "devastating for the city", he said, as it provided 90% of its international capacity last year.
Greece, a top world summer destination in the Mediterranean, is largely dependent on tourism. Greek media had anticipated Ryanair would shut its base in Thessaloniki, raising concerns from municipal authorities about the impact on tourism jobs.
(Reporting by Lefteris Papadimas and Kalliroi Pappa; Additional reporting by Iro Pappa and Alerksandar Vasovic in Belgrade; Writing by Angeliki Koutantou; Editing by Susan Fenton, Elaine Hardcastle and Tom Hogue)
