Sunday, December 22, 2024

Ryanair blames Reeves’s ‘idiotic’ tax grab as it cuts thousands of flights

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Mr O’Leary said regional airports were likely to be “particularly damaged” by the tax rise as reduced passenger numbers lead to fewer flights, higher fares and ultimately, job losses. Domestic services would be hard hit because travellers pay APD twice, the chief executive predicted.

He said: “As an island economy on the periphery of Europe, it is vital that the UK lowers air access costs.

“If Labour are serious about their claims to deliver growth they should start by scrapping APD. Instead, their first Budget has damaged growth, damaged tourism and damaged air travel.”

Mr O’Leary told The Telegraph last month that Ryanair was ready to move more planes to the UK if the Government reduced APD, which he referred to as “a penal tax on the poor.”

He pointed to cities including Glasgow, Edinburgh and Belfast as particularly vulnerable, where he said capacity had been increased but profitability remained marginal.

Ryanair said earlier this year that it would slash 12pc of its capacity in Germany in protest against higher taxes.

Low-cost airlines are uniquely positioned to respond to changes in demand and costs by shuffling their route networks. Ryanair stations jets at 95 airports across Europe, whereas traditional carriers such as British Airways tend to concentrate their resources at a single hub.

A shortage of planes amid delayed deliveries from Boeing also means that capacity is at a premium at Ryanair, which Mr O’Leary has suggested will cut its system-wide passenger target for 2025 by 5m as a result.

The company is due to report results for the six months through September on Nov 4.

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