Budget carrier Ryanair has blamed the latest rise in Air Passenger Duty for a review of its UK flights, which it says will be cut by “up to 10%” in 2025.
The slashed capacity could represent up to five million passengers, warned the airline’s chief executive Michael O’Leary.
On Wednesday (October 30), Chancellor Rachel Reeves outlined in her first Budget how Air Passenger Duty (APD) on economy class short-haul flights will rise by “no more than £2”, and will increase by 50% for flights by private jet.
O’Leary said: “Chancellor Rachel Reeves’ idiotic decision to further raise the UK’s already high air travel taxes will deliver cuts, not growth.”
The airline said that a family of four flying to Spain next year will pay £60 in air travel taxes – which makes the UK “a less competitive destination for tourism and airline investment”.
O’Leary commented: “As an island economy on the periphery of Europe, it is vital that the UK lowers air access costs so that low-fare airlines can grow tourism, traffic, visitor numbers and jobs, especially in the regions.
“This Labour government promised to deliver growth but instead their first budget has damaged growth, damaged tourism and damaged air travel to/from the UK.
“This week’s anti-growth air tax increase shows that Chancellor Rachel Reeves has no clue how to deliver growth in the UK economy.
“This short-sighted tax grab will make air travel much more expensive for ordinary UK families going on holidays abroad and will make the UK a less competitive destination compared to Ireland, Sweden, Hungary and Italy where these governments are abolishing travel taxes to stimulate traffic, tourism, and jobs growth in their economies.
“Ryanair will now review its UK schedules and expects to cut capacity to/from UK airports by up to 10% in 2025.
“This will reduce air travel to/from the UK by up to five million passengers as the Labour government’s budget delivers higher taxes and tourism declines not growth.”