Ryanair Chief Criticises Labour Fiscal Policy as Airline Reports Surging Profits

Michael O’Leary, the outspoken chief executive of Ryanair, has launched a stinging critique of the Labour government’s economic strategy, warning that the UK is on the “wrong path” under Chancellor Rachel Reeves. Speaking at the release of Ryanair’s half-year financial results, O’Leary doubled down on his concerns, denouncing wealth taxes and planned increases to air passenger duty as detrimental to Britain’s economic outlook.

O’Leary argued that raising taxes on the wealthy and levying additional charges on air travel will stifle growth. The UK is set to introduce higher air passenger duty from April, a move O’Leary believes will only hinder tourism and reduce overall tax revenue. “The way to grow is not by increasing entry taxes, which is what APD is. Eventually even a dumb Labour government will work out that for an island on the periphery of Europe, the way to grow — and the way to increase tax revenue — is to get tourists on to the island first and then tax them,” he said.

This withering assessment followed the announcement of robust financial results for Ryanair. The airline reported a 42 per cent surge in profits to €2.54 billion for the six months ending September, driven by a 13 per cent hike in average ticket prices and a 3 per cent increase in passenger numbers. Revenue swelled to €9.8 billion, as nearly 119 million passengers took to the skies with the Dublin-based carrier during the period.

Ryanair has further benefitted from the arrival of additional Boeing 737 Max aircraft, which are more fuel-efficient and allow a greater number of passengers per flight. The airline now expects to carry 207 million travellers in the year to March, up from an estimated 206 million on the back of stronger demand and expedited aircraft deliveries.

This operational efficiency comes at a time when “ancillary” income from extras such as baggage fees grew only modestly by 3 per cent. Yet, the rise in fares kept Ryanair firmly on course for net profit expansion, with analysts taking note of the carrier’s ability to recover from last year’s 7 per cent full-year fare decline.

The Ryanair boss’s comments highlight ongoing tensions between corporate leaders and policymakers as the UK’s business environment continues to evolve. O’Leary’s vocal opposition signals likely continued debates over the direction of fiscal policy and its impact on key sectors, particularly aviation and inbound tourism.