'Useless' and 'hopeless': Ryanair CEO slams U.K. government over travel tax

Ryanair main enforcement Michael O'Leary connected Monday admonished the U.K. authorities implicit its propulsion to rise taxes connected rider flights, informing that the argumentation volition spot airlines determination planes retired of the country.

Speaking to CNBC's "Europe Early Edition" aft reporting stronger-than-expected first-half profit, the outspoken CEO described the Labour government's propulsion to rise aerial question taxes arsenic antagonistic to its strategy of kickstarting economical growth.

His comments travel up of the U.K. government's high-stakes Autumn Budget connected Nov. 26, with Finance Minister Rachel Reeves nether unit to resoluteness a fiscal conundrum implicit spending, taxation and borrowing.

Ryanair's O'Leary said determination had been a inclination of European governments rolling backmost "mad biology taxes" and subsequently being rewarded with bumper economical growth.

"So, you spot markets similar Sweden, Hungary, Italy and Croatia abolishing biology taxes and past you person the laggards, similar Germany, France and Rachel Reeves present successful the U.K., remarkably talking astir wanting maturation and yet expanding taxes connected aerial question — connected an island, connected the periphery successful Europe," O'Leary told CNBC's Silvia Amaro connected Monday.

"Which again confirms my content that Rachel Reeves hasn't a hint however to present maturation contempt the information we person written to her offering her important growth, peculiarly successful the regions of the U.K," O'Leary said.

A Treasury spokesperson was not instantly disposable to remark erstwhile contacted by CNBC connected Monday morning.

The CEO of Europe's largest low-cost bearer singled retired Britain's air rider duty (APD), referring to a taxation per rider connected flights that depart the U.K. for home and planetary destinations.

In past year's Autumn Budget, Reeves announced strict rules that constricted the government's country for maneuver connected spending and borrowing, with day-to-day authorities spending funded by taxation revenues and not borrowing.

As portion of a broader propulsion to boost nationalist finances and promote much sustainable question options, Prime Minister Keir Starmer's authorities intends to summation APD rates from April adjacent year, with a 50% rise for backstage jets and wide increases for different flights.

To beryllium sure, APD is simply a important root of authorities income, with the Office for Budget Responsibility estimating revenues of £4.7 cardinal ($6.18 billion) successful 2025-2026. Aviation, meanwhile, is known to beryllium 1 of the fastest-growing sources of greenhouse state emissions.

O'Leary said the government's program to rise the APD from April adjacent twelvemonth would correspond a taxation of astir 33% connected the mean terms of a Ryanair flight, which helium said was astir £45.

"It's ridiculous," O'Leary said. "For a household of four, it becomes prohibitive. We wrote to Rachel Reeves erstwhile she archetypal got elected and said we tin present you 50% postulation growth, not successful London, but successful the regions of the U.K., where they truly request maturation successful those reddish partition seats, successful Birmingham, Manchester, Glasgow, Edinburgh, Bristol."

He added: "Just abolish APD extracurricular of London. You know, London is full, London tin wage the APD, but abolish it extracurricular of London. It would outgo them astir 2 cardinal of their budget, they would get that backmost successful further user spending, VAT connected further visitors connected user spending wrong 1 year. No response."

Asked whether Ryanair has had immoderate caller conversations with the Treasury up of the Autumn Budget, O'Leary replied: "No, they're hopeless."

"We got a anserine missive backmost from fig 11 saying, 'oh an summation of 2 pounds successful APD is lone 1% of mean summons prices.' Now, I don't cognize wherever they bargain their tickets but our mean summons terms is 45 pounds, truthful an summation of 2 pounds is simply a 5% increase. They can't adjacent bash their ain maths ... They're useless," O'Leary said.

If Reeves increases APD again successful the Autumn Budget, Ryanair's CEO said the institution would see moving craft to countries watering down their biology taxes, naming Sweden, Hungary and Italy arsenic imaginable options.