Ryanair boss accuses Chancellor of damaging UK economy with air tax hike

Ryanair criticizes decision to increase air passenger duty

Ryanair CEO Michael O’Leary has slammed Chancellor Rachel Reeves for her recent decision to raise air passenger duty on short-haul flights, stating that it will lead to cuts in UK flights and limit options for travelers. O’Leary emphasized that the extra charge would burden ordinary British families.

Impact of the tax increase on air travel

The budget flight to Europe will now face £15 in duty charges, with the standard rate rising to £32. O’Leary highlighted that this tax hike will have negative implications for UK tourism, jobs, and economic growth, especially affecting regional airports and ordinary families.

Ryanair's response and future plans

Ryanair is set to review its flight schedules and anticipates reducing its capacity to and from UK airports by up to 10% next year. This could lead to a reduction in flight choices for Brits and a decrease of up to 5 million passengers. O’Leary criticized the government for damaging growth and tourism with this tax hike.

Chancellor's justification and further increases

Chancellor Rachel Reeves defended the duty increase by stating that it had not kept up with inflation, leading to the adjustment of no more than £2 for economy class short-haul flights. She is also increasing duty on private jets by 50%.