Ryanair CEO Michael O’Leary slams UK government over travel tax plans
Michael O’Leary, chief executive officer of Ryanair Holdings Plc, during a news conference in London, UK, on Wednesday, Aug. 27, 2025.
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Ryanair chief executive Michael O’Leary criticized the U.K. government’s plan to increase taxes on passenger flights, warning that it could lead airlines to relocate aircraft out of the country.
Following a significant rise in first-half profit, O’Leary expressed his disapproval of the Labour government’s move to raise air travel taxes, which he believes contradicts the government’s goal of boosting economic growth.
His comments come ahead of the U.K. government’s Autumn Budget, where Finance Minister Rachel Reeves faces challenges in balancing spending, taxation, and borrowing.
O’Leary highlighted the positive impact of European governments eliminating environmental taxes on economic growth, contrasting it with the U.K.’s decision to increase taxes on air travel.
He emphasized the need for strategies that promote growth, particularly in regional areas of the U.K.
The CEO of Ryanair criticized the U.K.’s air passenger duty (APD) and the government’s decision to raise rates, impacting both domestic and international flights.
APD serves as a significant revenue source for the government, but the aviation industry’s environmental impact is a growing concern.
O’Leary proposed alternative strategies to boost economic growth and encourage sustainable travel options.
Chancellor of the Exchequer Rachel Reeves speaks on stage during the Labour Party conference on Sept. 29, 2025, in Liverpool, England.
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O’Leary criticized the government’s plan to raise APD rates, highlighting the impact on average flight prices and the potential consequences for families.
He urged for a reevaluation of the tax policy to stimulate growth in regional areas of the U.K.
Despite attempts to engage with the Treasury, O’Leary expressed frustration with the government’s approach and lack of response to industry concerns.
‘Can’t even do their own maths’
O’Leary criticized the government’s lack of understanding of the impact of tax increases on air travel prices, emphasizing the need for effective economic policies.
If APD rates continue to rise, Ryanair may consider relocating aircraft to countries with more favorable tax policies.
Despite the challenges, Ryanair’s stock price saw positive gains following O’Leary’s comments.
— CNBC’s Silvia Amaro contributed to this report.
