Ryanair's CEO Michael O'Leary has dealt a scathing blow to the UK government's economic prospects under Labour, claiming that the economy is "doomed" due to the party's failure to deliver on its promise of growth. The airline chief executive made his comments ahead of the upcoming budget, citing selective tax cuts as the key to unlocking economic expansion.
O'Leary, who has been at the helm of Ryanair since 1994, also took aim at Chancellor Rachel Reeves, accusing her of failing to address the issue of air travel taxes. He argued that the current system, which includes an air passenger duty (APD) tax, is stifling economic growth and driving high-net-worth individuals out of London.
The airline's latest financial results were a stark contrast to O'Leary's dire predictions, with Ryanair reporting a 42% surge in profits to €2.5bn (£2.2bn) in the first half of its financial year. The airline flew 119 million people during this period, up 3%, thanks in part to increased demand for travel.
However, O'Leary warned that air fares are unlikely to fall next year, with prices expected to modestly increase over the next four or five years. He also expressed concerns about EU proposals that would require airlines to allow passengers to bring two free cabin bags on board, arguing that it would be impossible to fit them on the plane.
The airline's comments come ahead of an anticipated increase in air passenger duty (APD) at the end of November, which could add up to £2 to the cost of a short-haul economy flight. If left unchanged, O'Leary warned that airlines may consider relocating their operations from smaller UK airports to countries with lower business taxes, such as Sweden and Italy.
The Treasury has disputed O'Leary's claims, arguing that APD changes would add just £2 for a family of four flying economy to Spain. However, the airline chief executive remains unconvinced, citing reports of possible new wealth taxes as driving high-net-worth individuals out of London.
O'Leary, who has been at the helm of Ryanair since 1994, also took aim at Chancellor Rachel Reeves, accusing her of failing to address the issue of air travel taxes. He argued that the current system, which includes an air passenger duty (APD) tax, is stifling economic growth and driving high-net-worth individuals out of London.
The airline's latest financial results were a stark contrast to O'Leary's dire predictions, with Ryanair reporting a 42% surge in profits to €2.5bn (£2.2bn) in the first half of its financial year. The airline flew 119 million people during this period, up 3%, thanks in part to increased demand for travel.
However, O'Leary warned that air fares are unlikely to fall next year, with prices expected to modestly increase over the next four or five years. He also expressed concerns about EU proposals that would require airlines to allow passengers to bring two free cabin bags on board, arguing that it would be impossible to fit them on the plane.
The airline's comments come ahead of an anticipated increase in air passenger duty (APD) at the end of November, which could add up to £2 to the cost of a short-haul economy flight. If left unchanged, O'Leary warned that airlines may consider relocating their operations from smaller UK airports to countries with lower business taxes, such as Sweden and Italy.
The Treasury has disputed O'Leary's claims, arguing that APD changes would add just £2 for a family of four flying economy to Spain. However, the airline chief executive remains unconvinced, citing reports of possible new wealth taxes as driving high-net-worth individuals out of London.
so O'Leary thinks he's got all the answers right? like, I get it, taxes are a thing and we need to balance growth with... well, something. but can't he just keep his mouth shut for once? 
i mean, this is the same guy who still thinks £20 return flights are a good deal from 2005 
. airlines will move to other countries with lower taxes... guess what? that's already happening 
. O'Leary needs to chill and stop stirring up drama.
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like, dude, you're making bank off people wanting to travel more and then you have the nerve to complain about taxes? 
anyway, i'm not sure what's more annoying - his constant negativity or the fact that he thinks he's above all this because he owns a big airline 
. I'm not saying O'Leary's wrong about air travel taxes, but come on, a 42% surge in profits? That's not exactly a coincidence... and what's really going on with these new wealth taxes? The gov't is trying to blame the airlines for their economic woes, but what if they're just scapegoats? 
️ i cant believe michael o'leary is speaking truth to power lol what a legend 
i remember when they first started out and michael was still building the brand 
now he's a total boss 
chancellor rachel reeves can't even touch him 
EU proposals about cabin bags? please, who cares 
let michael do his thing 
, and the next, he's all like we're gonna increase profits 
? What's up with that?! 
... but isn't it true that air travel taxes are already kinda expensive? 
Can't they just find a better way to make money than taxing passengers? 
goodbye UK air travel industry 
I'm kinda surprised by Ryanair's CEO comments about the UK government's economic prospects 
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. It's not like she's trying to stifle economic growth or drive people away from London 
. The airline's financials do show some promising signs, but we should be careful not to overreact and assume everything is going to be okay 
.
. That could definitely affect people who are already struggling with the cost of living 
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michael o'leary is literally a master manipulator he's always spewin out some crazy claims just 2 get attention like wut's up wit all these air passenger duty tax changes tho? 
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. I mean, 42% surge in profits is no joke! The thing is, O'Leary's predictions seem kinda over-the-top to me 
! Michael O'Leary makes some valid points tho 
. I get that the UK gov wants more revenue, but do they really need to hit passengers with even more costs? 
The EU proposals about cabin bags are also a bit annoying 
... who doesn't love free checked luggage, right? 
.
I gotta say, Michael O'Leary is always good for a laugh... and a rant! 
You can't just bash the government and expect them to roll over? 
. It's like he's trying to sound all serious and important, but really he's just winging it 
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. It's not that simple to just "bring in more money" or "make taxes lower". There are actual economics involved here 
. But hey, I guess when you're making bank as much as O'Leary is, it's hard to see the impact of your words and actions on the rest of us 
. Maybe O'Leary's just trying to get some attention before the budget