UPDATE: Ryanair’s Chief Executive, Michael O’Leary, has issued an urgent warning that significant flight cuts from UK airports could be imminent if the government increases the Air Passenger Duty (APD). This announcement comes as Chancellor Rachel Reeves prepares to unveil the budget on November 26, raising concerns among travelers and industry experts alike.
The proposed rise in APD, expected to take effect on April 1, could add as much as £2 to short-haul economy flights, directly impacting ticket prices for millions of passengers. O’Leary stated that any increase in this levy would force Ryanair and other airlines to reconsider their operations in the UK, potentially shifting flights to countries with more favorable tax environments, such as Sweden and Italy.
A Treasury spokesperson defended the proposed changes, stating: “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, with Ryanair reporting a 42 percent profit increase—amounting to €2.5 billion (£2.2 billion)—in the first half of the financial year, O’Leary’s warnings suggest that the airline industry is bracing for a turbulent period ahead.
Ryanair also noted a 3 percent rise in passenger numbers, totaling 119 million travelers. Yet, fares have risen by 13 percent, averaging €58, a trend that O’Leary predicts will continue. “Short-haul European air fares… are going to modestly increase for the next four or five years,” he cautioned, indicating that travelers should brace for further price hikes through 2027 and 2028.
This latest development is not just an economic issue; it resonates deeply with families and business travelers who rely on affordable flights. As Ryanair positions itself within a competitive European market, the implications of the APD increase could lead to fewer flight options and higher costs for the average consumer.
As the budget announcement approaches, all eyes will be on Chancellor Reeves and the Treasury’s decisions. Industry stakeholders and travelers alike are left wondering: will the UK government prioritize budgetary gains over the affordability and accessibility of air travel? Stay tuned for updates as this story develops.
