RYANAIR is set to axe thousands of flights after the passenger duty hike was announced.
Airline tycoon Michael O’Leary has slammed Rachel Reeves’ “idiotic” decision to bump the tax on economy seats to European hotspots by a whopping 15 per cent.
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In the budget on Wednesday, the Chancellor announced flights across the continent will now incur £15 of duty charges – increasing it by £2.
Meanwhile the standard rate is increased to £32.
And as a result of the rise in Air Passenger Duty (APD), holidaymakers planning on heading off to much-loved destinations such as Spain, Greece, Portugal and Italy could soon struggle to book flights.
It comes as Ryanair boss Mr O’Leary has said the airline will look to cut UK capacity by as much as 10 per cent next year.
Which is the equivalent of a reduction of around five million passengers.
He said: “This week’s anti-growth air tax increase shows that Chancellor Rachel Reeves has no clue how to deliver growth in the UK economy.
“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 Govt’s 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.”
Mr O’Leary said it’s “vital” the UK makes it cheaper to fly.
But Labour had instead “damaged tourism, and damaged air travel to and from the UK”.
He added: “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 £1000’s in free clothes and concert tickets.
“This anti-growth tax hike will damage UK tourism, jobs and economic growth, especially the UK regions, with regional airports being particularly damaged by this tax on ordinary families.”
APD is a 30 year old tax on flights that is automatically applied when passengers book tickets departing from UK airports which was initially designed to offset the environmental impact of air travel.
It is set to rise from the 2026/27 financial year.
Ms Reeves justified the increase in her Budget saying that “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.”
She is also hiking the increase of duty on private jets by a further 50 per cent.
And for long-haul economy passengers, the levy will be upped by £12 to £106.
She continued: “But I am taking a different approach when it comes to private jets, increasing the rate of air passenger duty by a further 50 per cent.
“That is equivalent to £450 per passenger for a private jet to, say, California.”
On the Beach research found 35 per cent of passengers said they are worried they won’t be able to afford a holiday if the APD rises.
Also, one in ten said they will not be able to go on holiday abroad next year as the increase will price them out.