Ryanair's CEO has strongly criticised the new Labour Government's decision to increase Air Passenger Duty (APD) on short-haul flights, announcing the UK's leading airline would cut 10 per cent of its UK seats next year.
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.
Rachel Reeves delivered the Budget on WednesdayPARyanair CEO Michael O'Leary argued that the tax hike will damage growth, tourism, and air travel to and from the UK.
He blasted the decision as "idiotic" and "short-sighted", adding that it demonstrates the Government's lack of understanding of how to deliver economic growth.
O'Leary said: "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.
"Reeves 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."
He added that "this Labour Government promised to deliver growth" but had instead "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."
"Instead, 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."
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.
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Michael O'Leary described the move as a 'short-sighted tax grab'
PAHe 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 Government’s Budget delivers higher taxes and tourism declines not growth."
The airline argued that UK domestic flights will be doubly affected, as they pay APD on both legs of the journey.
