Michael O’Leary, CEO of Ryanair, has expressed concerns over the UK economy under the Labour government ahead of this month’s budget, coinciding with the airline’s reported profit increase in the first half of the year. O’Leary criticized Chancellor Rachel Reeves, claiming she has not effectively promoted economic growth. He suggested that growth could be fostered through selective tax cuts rather than increasing taxes on wealth and air travel.
This statement comes in the context of anticipated hikes in air passenger duty (APD), a tax imposed on flights departing from UK airports, which airlines tend to pass on to consumers through higher ticket prices. An anticipated increase on 1 April could add up to £2 to the cost of short-haul economy flights. O’Leary warned that further increases in APD might compel airlines to transfer some operations from UK airports to countries with lower business taxes, potentially impacting smaller regional airports.
Ryanair reported a profit after tax of €2.5 billion (£2.2 billion) for the first half of its financial year, marking a 42% ascent compared to the previous year. The airline also noted an increase in passengers, flying 119 million individuals in that timeframe, due in part to strong demand for travel and an increase in air fares. O’Leary anticipates that airfares will continue to rise modestly in the coming years across the industry.
In addition to fiscal policies, O’Leary critiqued emerging EU regulations that would permit passengers to carry two free cabin bags on flights, arguing they may not fit onboard. A Treasury spokesperson replied that changes to APD would only result in a minimal cost increase for family travelers.
Source: https://www.theguardian.com/business/2025/nov/03/uk-economy-labour-ryanair-michael-oleary-rachel-reeves-profits