UPDATE: Ryanair’s Chief Executive Michael O’Leary has just issued a dire warning regarding potential flight cuts and fare increases in the UK if the government raises air passenger duty (APD) in the upcoming budget on November 26. This announcement comes as budget discussions intensify, and O’Leary’s comments signal urgent implications for travelers.
O’Leary stated that if Chancellor Rachel Reeves enacts an increase in APD, Ryanair could be forced to relocate operations from British regional airports to countries with more favorable business environments, such as Sweden and Italy. The APD, currently set to rise from April 1, is expected to add up to £2 to short-haul economy flights, significantly impacting travelers’ budgets.
A representative from the Treasury defended the planned changes, asserting, “Unlike other sectors, no VAT applies to plane tickets, and [APD] changes will add just £2 for a family of four flying economy to Spain.” However, O’Leary reacted strongly, stating that any increase would drive costs upward, affecting millions of travelers.
Ryanair recently reported a remarkable profit of €2.5 billion (£2.2 billion) for the first half of its financial year, reflecting a 42 percent increase from the previous year. Passenger numbers surged by 3 percent, totaling 119 million flying with the airline. Yet, the average fare has also risen by 13 percent to €58, and O’Leary warns that prices are unlikely to decrease in the near future.
He emphasized, “Short-haul European air fares … are going to modestly increase for the next four or five years.” This forecast suggests that consumers should prepare for ongoing financial pressures as airlines adjust to changing economic conditions.
As this situation develops, Ryanair’s warning should serve as a crucial reminder for travelers to stay informed and consider their travel plans carefully. The government’s decisions in the upcoming budget could have lasting implications for the aviation industry and the cost of air travel in the UK.
Stay updated for the latest developments as the budget date approaches.
