Ryanair CEO Michael O’Leary Blast UK Government’s Overreaching Travel Tax Plans: A Call for Change!

Michael O’Leary, the CEO of Ryanair Holdings Plc, voiced strong criticism of the U.K. government’s plans to raise taxes on passenger flights, claiming such actions could prompt airlines to relocate their operations abroad. In an interview with CNBC’s “Europe Early Edition” on August 27, after revealing a significant increase in first-half profits, O’Leary labeled the Labour government’s intention to hike air travel taxes as contrary to its objectives for stimulating economic growth.

O’Leary’s remarks come ahead of a crucial Autumn Budget scheduled for November 26, where Finance Minister Rachel Reeves faces mounting pressure to address complex issues surrounding spending, taxation, and borrowing. He highlighted a trend among several European nations, such as Sweden, Hungary, Italy, and Croatia, which have successfully reduced or eliminated “mad environmental taxes,” experiencing subsequent economic boosts. “You have countries like Germany and France, along with Rachel Reeves in the U.K., that talk about wanting growth while simultaneously increasing air travel taxes,” O’Leary noted, underscoring his skepticism regarding the government’s economic strategy.

He specifically criticized Britain’s air passenger duty (APD), a tax levied on passengers flying from the U.K. to destinations both domestic and international. The recent Autumn Budget announcements enforced strict limitations on government spending, compelling it to rely heavily on tax revenues rather than borrowing. As part of a broader fiscal strategy aimed at improving public finances and promoting sustainable travel, Prime Minister Keir Starmer’s government has proposed increasing APD rates starting in April, with a notable hike of 50% for private jets and additional increases for other flights.

O’Leary emphasized that the proposed rise in APD could result in a tax hike of nearly 33% on Ryanair’s average flight ticket priced at approximately £45. “It’s ridiculous,” he stated, explaining that for a family of four, the increased fees would become prohibitively expensive. He reiterated that Ryanair had previously reached out to Reeves, offering to deliver a 50% growth in traffic-targeting regions in the U.K. that urgently require economic recovery, such as Birmingham, Manchester, Glasgow, and Bristol. O’Leary urged the government to abolish APD outside of London, arguing that the additional consumer spending created by such a move would counterbalance any budgetary losses within a year.

When asked if there had been any recent dialogue with the Treasury leading up to the Autumn Budget, O’Leary dismissed the government’s responses: “No, they’re hopeless.” He recalled receiving a lackluster reply to his inquiries, which miscalculated the impact of the proposed APD increase on ticket prices. “An increase of £2 in APD is a 5% increase for us, not 1% as they claimed. They can’t even do their own maths,” he quipped.

O’Leary warned that if the APD increase proceeds as planned in the Autumn Budget, Ryanair may consider relocating its aircraft to countries that are rolling back environmental taxes, with Sweden, Hungary, and Italy identified as viable alternatives. Following O’Leary’s statements, Ryanair’s shares rose by 3% in early trading on Monday, reversing earlier declines.

Original Source: https://www.cnbc.com/2025/11/03/ryanair-ceo-michael-oleary-slams-uk-government-over-travel-tax-plans.html
Category :
Tags:
Publish Date: 2025-11-03 16:41:00