Ryanair plans to cut flights to and from UK airports by 10% next year following Labour’s decision to increase the tax on airline tickets in the autumn Budget.
Chief executive Michael O’Leary criticised the spending statement on Friday, saying it has “damaged” UK growth prospects and “made air travel much more expensive”.
He said Ryanair would “review” its schedules and the planned reduction could lead to as many as five million fewer passengers at UK airports.
This short-sighted tax grab… 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
Michael O’Leary
Chancellor Rachel Reeves said air passenger duty (APD) will rise from the 2026/27 financial year, adding up to £2 to the cost of an economy ticket for a short-haul flight.
Private jet users will face a 50% hike in APD.
Passenger duty rates are based on the length of the flight and the class of cabin.
Mr O’Leary said it is “vital” that the UK makes it cheaper to fly, but that Labour had instead “damaged tourism, and damaged air travel to and from the UK”.
“Chancellor Rachel Reeves idiotic decision to further raise the UK’s already high air travel taxes will deliver cuts, not growth.”
He added: “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.”
Ryanair set a record for its passenger numbers in August, saying it carried 20.5 million people across the month.
But its profits slumped 46% earlier in the year, after average air fares fell by about 15% in the three months to June.
The Chancellor told the Commons on Wednesday: “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.”
Mr O’Leary’s criticism of the policy comes after Karen Dee, chief executive of trade body AirportsUK, described the announcement as “disappointing”.