Ryanair to shut Thessaloniki base in Greece due to high fees, says senior executive

* Ryanair blames Fraport Greece for high fees, says charges ​66% above ⁠pre-Covid level

* 700,000 seats and 12 routes ​will be cut across Greece, aircraft reallocated to other countries

* Local officials warn closure would hurt Thessaloniki tourism, cause job losses (Adds ​detail ‌on removal and reallocation of aircrafts, capacity cuts in paragraphs 5-10, hubs and Berlin cut paragraph 6, ⁠local impact paragraphs 11-12)

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 was not immediately ​reachable for comment.

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 be suspended also 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 added, ​as it provided 90% ​of 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 local tourism jobs. (Additional reporting by Iro Pappa , Writing by Angeliki Koutantou; Editing by Susan Fenton, Elaine Hardcastle)

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