Irish low-cost airline Ryanair lost a legal case before the General Court of the European Union on Wednesday.

The court ruled that the Italian government aid to airlines during the COVID-19 pandemic was compatible with EU law, and the ruling can still be appealed to the European Court of Justice.

Rome had provided aid worth 130 million euros ($148.3 million) to Italian airlines during the 2020 pandemic, aiming to compensate companies for losses incurred due to travel restrictions, and the European Commission approved this measure, according to the German news agency dpa.

Ryanair appealed this approval, and initially succeeded in its case before the General Court in 2023, however, the European Court of Justice overturned the ruling and sent the case back to the General Court.

The court judges said that the condition requiring an airline to hold an Italian operating license to receive aid did not constitute illegal discrimination.

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