The UK economy is “doomed” under the Labour government, the boss of Ryanair has said before this month’s budget, as the airline revealed a jump in first half profits.
Michael O’Leary, the chief executive of the budget airline, hit out at Rachel Reeves, accusing the chancellor of failing to deliver on her programme of economic growth.
“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.”
It comes as airlines brace for the possibility of another increase in air passenger duty (APD) at the budget on 26 November. APD is a tax levied on flights departing from UK airports, though carriers typically pass on the cost to passengers through higher fares. The tax is expected to rise on 1 April, adding up to £2 to the cost of a short-haul economy flight.
If it were to increase again, O’Leary said, airlines might move operations from some of the UK’s smaller airports to economies 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 reports of possible new wealth taxes were driving traffic out of London.
“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.”
The airline, which is headquartered in Dublin and employs about 26,000 people worldwide, reported a profit after tax of €2.5bn (£2.2bn) in the first half of its financial year, a rise of 42% compared with the equivalent period last year.
Ryanair flew 119 million people in the period, up 3%, thanks to more Boeing aircraft deliveries than expected and strong demand for travel. Air fares rose by 13% to €58 on average, and O’Leary added that prices were unlikely to fall next year.
“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.”
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The airline expects to exceed its passenger growth target for the year, forecasting a rise of more than 3% in its 2026 financial year to 207 million people, up from a previous estimate of 206 million.
O’Leary, who has led Ryanair since 1994, also criticised EU proposals that would require airlines to allow passengers to bring two free cabin bags on to an aircraft, arguing that airlines would not be able to fit them on the plane.
The government was approached for comment.
