Copyright dailypost
Ryanair chief Michael O'Leary has issued a stark warning that the budget carrier might slash UK flights, should Chancellor Rachel Reeves hike air passenger duty (APD) in her upcoming budget on 26th November. APD represents a levy imposed on departures from British airports, with costs typically transferred to travellers through elevated ticket prices. The tax is anticipated to climb from Apri 1, potentially adding up to £2 to short-haul economy journeys, according to the Guardian. O'Leary cautioned that any APD rise would prompt airlines like Ryanair to relocate operations from Britain's regional airports to nations offering more favourable business taxation, including Sweden and Italy. A Treasury representative informed The Guardian: "Unlike other sectors, no VAT applies to plane tickets, and [APD] changes will add just £2 for a family of four flying economy to Spain." These remarks follow Ryanair's announcement of substantial profit growth during the initial six months of its financial year, reports the Manchester Evening News . The airport reported a profit after tax of €2.5bn (£2.2bn) in the first half of its financial year, a rise of 42per cent compared with the equivalent period last year. Passenger numbers were up three per cent, with 119 million people flying with the airline. But air fares rose by 13 per cent to €58 on average. O'Leary warned that they are unlikely to fall next year, and hinted that they could increase in the coming years. He said: "Short-haul European air fares ... are going to modestly increase for the next four or five years. I think you are going to see, not just in Ryanair but across the airlines, modest price increases through 2027 and 2028." Join the North Wales Live WhatsApp community group where you can get the latest stories delivered straight to your phone Find out what's happening near you
