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Ryanair reducing the number of UK flights by 10% following Labour’s Air Passenger Duty hike
By Letara Draghia •
Published: 01 Nov 2024 • 22:11
• 1 minute read
Ryanair has announced plans to reduce the number of UK flights by 10 per cent next year, in response to Labour’s decision to increase air passenger duty (APD) in the recent Budget.
Ryanair CEO Michael O’Leary criticised the move, describing it as “damaging” for the UK’s tourism and air travel competitiveness. This reduction in flights could lead to up to five million fewer passengers passing through UK airports. Less demand tends to equal higher prices.
Labour’s Air Passenger Duty hike on UK travel
Labour’s latest Budget confirmed that from 2026/27, air passenger duty (APD) on short-haul flights will see a modest increase, adding up to £2 per economy ticket. Meanwhile, private jet passengers are set to face a 50 per cent rise in APD, which is anticipated to generate additional revenue while placing more of the burden on richer travellers. According to the Chancellor, Rachel Reeves, APD had not kept pace with inflation in recent years, prompting the need for an adjustment.
Michael O’Leary responded strongly to the Budget announcement, claiming the policy would make “air travel much more expensive for ordinary UK families.” He argued that the increased duty will make the UK less attractive to travellers, especially in comparison to European nations like Ireland, Sweden, Hungary, and Italy, which have recently reduced or eliminated travel taxes to encourage tourism.
In a statement, O’Leary said, “Chancellor Rachel Reeves’s idiotic decision to further raise the UK’s already high air travel taxes will deliver cuts, not growth.”
Lower profits for Ryanair despite record-breaking air traffic
Ryanair experienced a record-breaking August with over 20.5 million passengers. However, the airline’s profits fell by 46 per cent earlier this year due to a 15 per cent drop in average flight prices in June. Just this week, Ryanair offered 20% off selected flights for a limited time.
The dip in prices emphasises the airline’s reliance on maintaining competitive ticket fees and its sensitivity to regulatory changes that may inflate operational costs.
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