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Michael O’Leary, an Irish businessman and the Group CEO of Ryanair has warned that the United Kingdom economy is “doomed” under the Labour government, ahead of this month’s budget, as the airline reported a sharp rise in first-half profits. O’Leary, the chief executive of the low-cost carrier, criticised Chancellor Rachel Reeves for not delivering on her economic growth agenda. “The UK economy under the current leadership is doomed,” he said. “The UK badly needs growth, but the way to deliver growth is through selective tax cuts … you are not going to grow the UK economy by taxing wealth or by taxing air travel.” Airlines are preparing for the possibility of another rise in air passenger duty (APD) in the 26 November budget. The tax, applied to flights leaving UK airports and typically passed on to passengers through ticket prices, is already set to rise on 1 April 2026, adding up to £2 to short-haul economy fares. O’Leary warned that further increases could push airlines away from smaller UK airports to countries with lower business taxes, such as Sweden and Italy. “I hold very little faith in Rachel Reeves or the current economic strategy of the Labour government,” he said, adding that talk of potential new wealth taxes was prompting wealthy individuals to move abroad. “Rich people are fleeing … as they are trying to find low-fare flights to get the hell out of London before Rachel Reeves taxes their mansions, their income and inheritance,” he added. Ryanair, headquartered in Dublin and employing about 26,000 people worldwide, reported a post-tax profit of €2.5bn (£2.2bn) for the first half of its financial year, up 42% from the same period last year. The airline carried 119 million passengers, a 3% increase, supported by higher Boeing aircraft deliveries and continued strong travel demand. Average air fares rose by 13% to €58, and O’Leary said prices were unlikely to drop soon. “Short-haul European air fares … are going to modestly increase for the next four or five years,” he said. “I think you are going to see, not just in Ryanair but across the airlines, modest price increases through 2027 and 2028.” Ryanair expects to exceed its annual passenger growth target, forecasting over 207 million passengers in its 2026 financial year, up from a previous estimate of 206 million. O’Leary also criticised EU proposals requiring airlines to allow all passengers two free cabin bags, arguing that aircraft cabins do not have enough space for such a rule. The UK government has been approached for comment. (The Guardian UK) ALSO READ TOP STORIES FROM NIGERIAN TRIBUNE
