Ryanair profits plummet as chief executive warns of UK flight cuts following Labour’s ‘idiotic decision’ | Tourism news

Ryanair said it made a smaller profit in the first half as the airline said it carried more customers at lower prices.

The budget airline reported pre-tax profits of €2.1bn (£1.8bn) in the six months to the end of September, down 16% on the same period last year.

Passenger numbers rose 9% year on year to a record 115 million, Ryanair said.

But the company’s profits were hit by a decline in average airfare by a tenth, although the company said lower prices had prompted many consumers to switch from rival airlines.

Demand for flights was strong but could continue to be affected by delays in Boeing aircraft deliveries, staff shortages and the ongoing risk of conflict in Ukraine and the Middle East, Ryanair said.

The news comes just days after Ryanair chief executive Michael O’Leary warned the company could cut up to 10% of its flights next year following Labour’s autumn budget.

O’Leary said Ryanair would have to “reconsider” its flight schedule. Expected cuts could result in up to five million fewer passengers passing through UK airports.

Chancellor Rachel Reeves has confirmed that Air Passenger Duty (APD) will increase from the 2026/27 financial year, adding as much as £2 to the price of an economy ticket on short-haul flights. Meanwhile, among private jet passengers, a 50 percent increase in APD is expected.

Passenger tax rates are determined by both flight distance and class of travel.

O’Leary stressed the importance of improving the affordability of flying in the UK and criticized Labor for “damaging tourism and air travel to and from the UK”.

He went on to say: “Chancellor Rachel Reeves’ idiotic decision to further increase the UK’s already high air travel taxes will lead to contraction rather than economic growth.”

He also warned: “This short-sighted tax charge will make airfares much more expensive for ordinary British families going on holiday abroad and will make the UK a less competitive destination compared to Ireland, Sweden, Hungary and Italy, where those governments are canceling travel.” taxes to stimulate traffic, tourism and job growth in their economy.”

Ryanair announced a record August, carrying a whopping 20.5 million passengers.