Ryanair will reduce flights to and from English and Scottish airports by 10pc next year due to Labour’s decision to increase airline ticket taxes, potentially resulting in five million fewer passengers.
CEO Michael O’Leary criticised the tax hike, stating it harms growth and makes air travel more expensive, particularly for families traveling abroad.
Chancellor Rachel Reeves announced that air passenger duty (APD) will increase by up to £2 for short-haul economy tickets starting from 2026/27, while private jet users will see a 50pc hike.
Michael O’Leary argued that the increased travel taxes will render England less competitive compared to countries reducing or abolishing similar taxes to boost tourism and economic growth.
Michael O’Leary shared: “As an Island economy on the periphery of Europe, it is vital that Westminster 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 island’s growth prospects and made air travel much more expensive for families travelling abroad on holidays, or to visit friends and family.
This Labour Government promised to deliver growth but instead their first budget has damaged growth, damaged tourism, and damaged air travel to/from the island. At a time when Ireland, Hungary, Sweden and many regions in Italy have abolished air travel taxes, Chancellor Rachel Reeves idiotic decision to further raise already high air travel taxes will deliver cuts, not growth.
This week’s anti-growth air tax increase shows that Chancellor Rachel Reeves has no clue how to deliver growth in the economy. This short-sighted tax grab will make air travel much more expensive for ordinary families going on holidays abroad and will make England a less competitive destination compared to Ireland, Sweden, Hungary and Italy where these Government’s are abolishing travel taxes to stimulate traffic, tourism, and jobs growth in their economies. Ryanair will now review its schedules and expects to cut capacity to/from England and Scotland’s airports by up to 10pc in 2025. This will reduce air travel to/from England by up to 5m passengers as the Labour Government’s budget delivers higher taxes and tourism declines not growth.”
