Ryanair’s outspoken CEO, Michael O’Leary, has sharply criticised Chancellor Rachel Reeves’ decision to raise Air Passenger Duty on short-haul flights.
He claimed the increases would stifle growth and drive up costs for British families.
The increase, announced in the recent Budget, raises the duty on economy flights within Europe by £2, to £15, and increases the standard rate on longer flights to £32.
In his critique, Mr O’Leary warned the additional costs would impact affordability, causing Ryanair to cut its UK flight schedules by as much as 10% and potentially reducing overall air travel from the UK by around 5 million passengers.
The airline argues this decrease in flights will hurt tourism, reduce options for British holidaymakers, and harm economic growth in regional areas.
“This anti-growth tax hike will damage UK tourism, jobs, and economic growth, especially in the regions,” Ryanair said in a statement.
“A family of four flying to Spain on a low-cost holiday next year will pay £60 in air travel taxes to a government whose Minister receives thousands in free clothes and concert tickets.”
Mr O’Leary emphasized that other European nations, including Ireland, Hungary, and Sweden, have eliminated or reduced air travel taxes to stimulate tourism and travel.
“This week’s anti-growth air tax increase shows that Chancellor Rachel Reeves has no clue how to deliver growth in the UK economy,” he said.
O’Leary stated that Ryanair will now review its flight schedules for the coming year, with the anticipated reduction of capacity potentially shrinking flight availability and choices for UK travelers.
In her Budget speech, Chancellor Reeves defended the APD hike.
She said: “Air passenger duty has not kept up with inflation in recent years, so we are introducing an adjustment, meaning an increase of no more than £2 for an economy class short-haul flight.”
Additionally, the Chancellor announced a 50% duty increase on private jets, which she said would better reflect their environmental impact.