Ryanair could cut flight capacity by 10% as boss slams air travel tax hike – holidays set to become ‘much more expensive’
Ryanair, the UK’s leading airline, has strongly criticised the new Labour government’s decision to increase Air Passenger Duty (APD) on short-haul flights.
The £2 per passenger hike, announced in Chancellor Rachel Reeves’ recent budget, has been condemned as a blow to UK families and tourism.
The low-cost carrier argues that this tax increase will make holidays abroad more expensive for ordinary Britons.
In some cases, a family of four may now face £60 in air travel taxes for a trip to Spain.
Ryanair CEO Michael O’Leary has been vocal in his criticism of the policy and argued that the tax hike will damage growth, tourism, and air travel to and from the UK.
He described the decision as “idiotic” and “short-sighted”, adding that it demonstrates the government’s lack of understanding of how to deliver economic growth.
The tax increase is expected to have far-reaching consequences for the UK’s tourism industry, explained O’Leary.
He stated: “This Labour Government promised to deliver growth but instead their first budget has damaged growth, damaged tourism, and damaged air travel to/from the UK.”
He further emphasised that the increase will make the UK less competitive compared to countries like Ireland and Sweden, which are abolishing travel taxes.
O’Leary noted: “As an Island economy on the periphery of Europe, it is vital that the UK lowers air access costs so that low fare airlines can grow tourism, traffic, visitor numbers and jobs, especially in the regions.”
Making the UK a less competitive destination for tourism and airline investment could lead to fewer flights, higher fares, and job losses, with regional airports facing the brunt of the impact, the Ryanair boss explained.
He continued: “Ryanair will now review its UK schedules and expects to cut capacity to/from UK airports by up to 10 per cent in 2025.
“This will reduce air travel to/from the UK by up to five million passengers as the Labour Govt’s budget delivers higher taxes and tourism declines not growth.”
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The airline argued that UK domestic flights will be doubly affected, as they pay APD on both legs of the journey.
“Chancellor Rachel Reeves this week has damaged the UK’s growth prospects and made air travel much more expensive for UK families travelling abroad on holidays, or to visit friends and family,” said O’Leary.
“This short-sighted tax grab will make air travel much more expensive for ordinary UK families going on holidays abroad and will make the UK a less competitive destination compared to Ireland, Sweden, Hungary and Italy where these Governments are abolishing travel taxes to stimulate traffic, tourism, and jobs growth in their economies.”