Workflow
Air travel tax increase
icon
Search documents
'Useless' and 'hopeless': Ryanair CEO slams U.K. government over travel tax
CNBC· 2025-11-03 08:25
Core Viewpoint - Ryanair's CEO Michael O'Leary criticizes the U.K. government's plan to increase air passenger duty (APD), arguing it contradicts efforts to stimulate economic growth and could lead airlines to relocate operations abroad [2][8][12] Group 1: Government Tax Policy - The U.K. government intends to raise APD rates from April next year, including a 50% increase for private jets and general increases for other flights [8] - O'Leary highlights that the proposed APD increase would represent a tax of nearly 33% on the average Ryanair flight price of £45 [9][10] - The Office for Budget Responsibility estimates APD revenues to be £4.7 billion ($6.18 billion) in 2025-2026, indicating its significance as a government income source [9] Group 2: Economic Impact - O'Leary argues that increasing air travel taxes is counterproductive to the government's goal of economic growth, citing examples of other European countries that have abolished similar taxes and experienced economic benefits [3][4] - He suggests that abolishing APD outside of London could lead to a 50% traffic growth in regional areas, which are in need of economic stimulation [10] Group 3: Company Strategy - Ryanair is considering relocating aircraft to countries with lower environmental taxes, such as Sweden, Hungary, and Italy, if the U.K. government proceeds with the APD increase [12] - O'Leary expresses frustration over the government's lack of responsiveness to Ryanair's proposals for growth in the regions of the U.K. [10][11]