Casablanca – Irish low-cost carrier Ryanair is reshaping its European network in one of its largest capacity reallocations to date, cutting deeply into Spanish regional operations while expanding aggressively into Morocco and other emerging markets. The move underscores shifting priorities in the aviation industry as airlines chase lower costs and stronger growth opportunities.

Beginning with the 2025–2026 winter season, Ryanair will withdraw roughly 1–2 million seats from Spain’s regional airports, including the Canary Islands. Company executives confirmed that a large portion of this capacity will be redeployed to Morocco, alongside new growth in Italy, Croatia, Albania, Sweden, and Hungary. Morocco stands out as one of the primary beneficiaries, with its expanding airport infrastructure and growing demand for affordable connections to Europe.

The decision carries heavy consequences for Spain. Ryanair announced it will close its operational base in Santiago de Compostela, suspend flights to Vigo starting January 2026, and halt service at Tenerife North for the winter season. Operations at Valladolid and Jerez, already reduced, will remain closed. In total, the airline is canceling more than 36 direct routes, with severe cuts in regional hubs such as Santander (–38%), Zaragoza (–45%), and Asturias (–16%). The Canary Islands alone will lose about 400,000 seats, representing 40% of the total reduction.

Ryanair CEO Eddie Wilson has framed the cuts as a direct response to Spanish airport authority AENA’s decision to raise fees by 6.5% beginning in 2026. He argued that the new charges—set to climb to the equivalent of about $11.90 per passenger—would push costs to their highest level in a decade despite AENA reporting record passenger volumes and strong profits. “This policy undermines regional connectivity in what is known as ‘Empty Spain’ and will damage passenger flows, jobs, and tourism,” Wilson warned.

The airline has accused AENA of focusing on maximizing revenue at major hubs like Madrid and Barcelona while neglecting regional airports. It also criticized what it calls a “monopoly that arbitrarily drives up prices,” suggesting that Spain’s autonomous regions should take over management of less profitable airports to ensure their competitiveness.

AENA has strongly rejected the claims. The operator insists that the fee hike is relatively modest—just over 6%—and argues that Ryanair is applying unfair pressure on governments. It points out that the airline itself increased ticket prices by 21% last year while recording record passenger numbers, moving 21 million travelers in August 2025 alone. AENA president Maurici Lucena went further, accusing Ryanair of seeking subsidies from local authorities in exchange for keeping routes open, describing its tactics as “political blackmail.”

For Ryanair, however, the cost structure in Spain is increasingly unattractive compared with alternatives. Countries such as Morocco, Italy, and Croatia have actively reduced airport fees to draw in carriers, boost tourism, and create jobs. Wilson noted that this makes them far more competitive destinations for low-cost airlines seeking to maximize fleet efficiency.

Morocco is emerging as one of the largest winners of this dispute. The country has steadily positioned itself as a strategic hub for low-cost aviation in North Africa, supported by an expanding airport network in Casablanca, Marrakech, Tangier, and Fez. These airports are increasingly integrated with European flight schedules, enabling Morocco to capture rising demand for both leisure and business travel.

Ryanair has already been expanding in Morocco, adding new domestic and international routes that strengthen its presence. The shift of aircraft and slots away from Spain is expected to accelerate this growth, aligning with Morocco’s broader strategy of leveraging air connectivity to stimulate its tourism industry. By offering lower airport charges, the country has become an attractive alternative for airlines looking to offset rising operating costs in Western Europe.

The macroeconomic effects could be significant. For Spain, the cuts risk reducing air accessibility to less densely populated regions, with potential knock-on effects for local economies dependent on tourism. For Morocco, the redeployment promises higher passenger traffic, more international visibility, and stronger integration with Europe’s travel market.

Industry observers say the dispute reflects broader structural tensions across Europe. Airport operators, often under pressure to fund modernization and expansion, are passing costs on to airlines through higher fees. Budget carriers, whose margins are slim and customer bases highly sensitive to price changes, are responding by shifting capacity toward jurisdictions that offer more favorable conditions.

With 300 new aircraft on order, Ryanair has made it clear that future deployment will favor markets that cooperate with its cost structure. For now, Morocco appears well placed to capture a significant share of that growth, reinforcing its role as a rising hub for low-cost aviation in the wider Mediterranean region.