Ryanair will on Wednesday announce plans to start flying from Frankfurt Airport, stepping up competition with Lufthansa on its home turf, a source familiar with the matter has told Reuters.
The flights will likely start from the summer 2017 flight season, which begins in March, the source said.
The German daily Frankfurter Allgemeine Zeitung, citing industry sources, said Ryanair would fly to popular Spanish tourist destinations such as Mallorca.
Frankfurt Airport operator Fraport has been in talks with low-cost carriers to boost passenger numbers at Europe's fourth-largest hub, and chief executive Stefan Schulte told Reuters last month that Fraport could offer financial incentives for a limited time to encourage new budget routes.
Ryanair boss Michael O’Leary has previously said that high fees and long turnaround times at Frankfurt, London Heathrow and Paris Charles de Gaulle make it difficult for low-cost operators to fly from those hubs.
Headache for Lufthansa
The news will provide a further headache for Fraport's main customer, Lufthansa, which has slowed growth plans at its main brand and has faced strikes while it tries to lower costs and expand its own budget unit, Eurowings.
Fraport’s shares rose 2.8 per cent on Tuesday, making them the biggest midcap gainer, while Lufthansa extended losses – down 1.6 per cent, among the biggest fallers on the Dax – after the Reuters report.
In August, Fraport cut its forecast for passenger numbers at Frankfurt this year, after attacks in Europe deterred long-haul travellers.
Only a few low-cost carriers, including Spain’s Vueling and Iceland’s Wow Air, offer flights from Frankfurt, accounting for just 4 per cent of passengers. This compares with 20-30 per cent at other major international hubs.
Ryanair, meanwhile, has been expanding in Germany, taking advantage of the retrenchment by Germany's second-largest carrier, Air Berlin, to add flights from Hamburg and Berlin, including some on the Berlin-Cologne route popular with business travellers.
Fraport boss Mr Schulte will on Wednesday host a press conference with Ryanair's chief marketing officer, Kenny Jacobs, and chief operating officer, David O'Brien, at Frankfurt Airport, the companies said in press invitations sent out on Tuesday. They declined to comment on the reason for the press conference.
Also on Wednesday, Lufthansa publishes third-quarter results.
Ryanair is due to report half-year results on November 7th, when Mr O’Leary is expected to give an update on the carrier’s progress in attracting business customers.