Ryanair has issued a stark warning to the UK government, threatening to cut hundreds of flights if Chancellor Rachel Reeves raises air passenger duty (APD) in the upcoming Budget.
Michael O’Leary, Ryanair’s CEO, said any increase in APD, particularly on domestic flights, would severely impact customer demand and make certain routes economically unfeasible.
O’Leary voiced his concerns, stating: “If they raise APD again on domestic flights then there will be a cut in capacity, no question. These routes are not particularly profitable, they barely break even.” The CEO’s comments come as the Chancellor considers tax hikes to address a £22 billion budget shortfall, with aviation taxes seen as a potential target for increased revenue.
Currently, APD on internal flights stands at £7, but any rise, according to O’Leary, would hit ordinary passengers hardest. He described APD as “a penal tax on the poor” and warned that any tax increases could deter tourists and undermine recent investment in regional UK airports, where Ryanair has expanded capacity, particularly in Glasgow, Edinburgh, and Belfast.
O’Leary’s remarks follow a similar move by Ryanair in Germany, where the airline slashed 12% of its capacity due to higher taxes, demonstrating its readiness to shift aircraft across Europe when routes become less viable.
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