Ryanair chief ‘will cut capacity’ on UK flights if Labour raises taxes on air fares – London Business News | London Wallet

It is believed the Chancellor is plotting to raise taxes on air fares which will be a costly blow for millions of holidaymakers.

Rachel Reeves could raise air fares in a stealth tax raid which will see an increase in Air Passenger Duty (APD) during the Autumn Budget on 30 October.

Ryanair chief has said that if the Chancellor raises APD then the airline will end up cutting hundreds of UK flights which will be a “penal tax on the poor,” GB News reports.

He said that most regional flight routes are “not particularly profitable, they barely break even.”

Michael O’Leary, Ryanair’s chief executive said, “If they [Labour] raise APD again on domestic flights then there will be a cut in capacity, no question.”

Industry experts have warned that if the Chancellor does raise APD this will collectively cost hundreds of millions for travellers, this could also hit businesses travelling for work appointments.

The airline industry IATA has warned the APD is “counterproductive economically and ineffective environmentally.”

An aviation industry source said, “We’re expecting an above-RPI increase given everything we’re hearing about tax rises in the Budget.

A Treasury spokesman said, “The Chancellor has been clear that difficult decisions lie ahead on spending, welfare and tax to fix the foundations of our economy.”