Ryanair UK: CEO Michael O'Leary warns thousands of flights to be axed affecting 'millions' over Rachel Reeves's 'idiotic' tax

Ryanair boss Michael O'Leary said five million passengers at UK airports could be affected after the discount airline announced a “review” into its schedules following the Autumn Budget. O’Leary said he would be scaling back the airline's operations in Britain following the government's decision to increase the tax on air travel in the recent Autumn Budget.

He claimed the budget had "damaged" the nation's growth prospects and "made air travel much more expensive". Air Passenger Duty (APD) for short-haul international flights will increase by £2 for economy tickets from April 1, 2026, with a much higher rate of 50% imposed on wealthy private jet owners.

O'Leary said Ryanair would now "review" its schedules, and claimed the planned reduction could lead to as many as five million fewer passengers at UK airports. Speaking on Friday (1 November) he also said the government had "damaged tourism and damaged air travel to and from the UK".

He added: "Chancellor Rachel Reeves's idiotic decision to further raise the UK's already high air travel taxes will deliver cuts, not growth. This short-sighted tax grab will make air travel much more expensive for ordinary UK families going on holidays abroad and will make the UK a less competitive destination compared to Ireland, Sweden, Hungary and Italy where these governments are abolishing travel taxes to stimulate traffic, tourism, and jobs growth in their economies."

Rachel Reeves said the tax had not risen in line with inflation for several years, and that the "adjustment" would amount to only an £2 increase on short-haul economy flights. The Chancellor told the Commons: "Air passenger duty has not kept up with inflation in recent years so we are introducing an adjustment, meaning an increase of no more than £2 for an economy class short-haul flight."

On the Beach research found 35 per cent of passengers said they are worried they won't be able to afford a holiday if the APD rises. Also, one in ten said they will not be able to go on holiday abroad next year as the increase will price them out.