DUBLIN, Ireland: Ryanair has announced plans to reduce flights to and from UK airports by 10 percent next year, following the UK government's decision to raise the Air Passenger Duty (APD) in the latest Budget.
CEO Michael O'Leary criticized the move, calling it "idiotic" and claiming it will make air travel more expensive and harm the UK's tourism and economic growth. According to O'Leary, the planned reduction could result in up to five million fewer passengers flying through UK airports.
The APD increase, set to take effect in the 2026-2027 financial year, will add up to two pounds (2.39 euros) to the cost of an economy short-haul ticket, while private jet users will see a 50 percent increase. O'Leary argued that the tax hike makes the UK less attractive for air travel compared to other countries that are cutting or eliminating travel taxes to boost tourism and job growth.
"This tax grab will make air travel more expensive for UK families going on holiday and make the UK a less competitive destination," O'Leary stated, contrasting the UK's approach with countries like Ireland, Sweden, Hungary, and Italy, where similar taxes are being reduced.
Despite Ryanair setting a passenger record in August with 20.5 million travelers, the airline's profits have declined, down 46 percent earlier this year following a 15 percent drop in average fares for the three months ending in June.
O'Leary's comments echo those of AirportsUK's Karen Dee, who also expressed disappointment over the tax hike.