Ryanair boss Michael O’Leary has launched a searing attack on Chancellor Rachel Reeves, claiming her tax policies are “dooming” the UK economy, even as his budget airline posted record profits in the half-year due to soaring ticket prices and rising passenger numbers.
Presenting the airline’s results, O’Leary accused the Labor government of pursuing policies that would discourage investment and weaken growth. “Rachel Reeves is on the wrong path,” he said. “The UK economy is doomed under current leadership. I have very little confidence in Rachel Reeves or the Labor government’s current economic strategy.”
The Irish Executive said clearly that Labour’s decision to tax wealth and increase the Air Passenger Tax (APD) would harm tourism, the economy and the wider economy. “You won’t grow the UK economy by taxing wealth or air travel,” he said. “They need to roll back these taxes as quickly as possible.”
O’Leary added that Reeves needs to “learn from her mistakes” and focus on boosting tourism and spending rather than punishing it. “The path to growth is not through increasing entry taxes, as is the case with APD,” he said. “Ultimately, even a stupid Labor government will realize that the way to grow – and increase tax revenue – for an island on the edge of Europe is to first attract tourists to the island and then tax them.”
Asked if he thought Reeves might change course, O’Leary replied bluntly: “She’s going to screw it up even more.”
The attack came as Ryanair reported record results for the six months to September: profits rose 42 percent to 2.54 billion euros, driven by a 13 percent rise in average ticket prices and robust summer demand. Pre-tax profit rose by 40 percent to 2.89 billion euros, well above market forecasts of 2.5 billion euros.
Sales rose by 13 percent to 9.8 billion euros, passenger numbers rose by 3 percent to 119 million. The average fare per passenger was €65, reflecting a combination of higher demand and reduced competition in European short-haul transport.
The airline expects to carry 207 million passengers in the year to March 2026 – up from a previous forecast of 206 million – thanks to strong bookings and early deliveries of Boeing 737 Max aircraft. Almost a third of Ryanair’s 636-strong fleet now consists of the fuel-efficient Max jets, allowing the company to carry more passengers at lower costs.
Despite slower growth in additional charges for extras such as baggage, which rose just 3 percent, Ryanair described its performance as “record-breaking” and said it would recover from a 7 percent fall in prices last year.
“We cautiously expect to be able to fully offset last year’s price decline, which should result in reasonable net profit growth for the full year,” the company said.
O’Leary’s comments highlight the growing tension between business leaders and the Labor government ahead of the November budget, in which Reeves is expected to outline measures to boost growth while closing a £27 billion budget gap.
While businesses have praised their focus on stability, several senior executives – including Mulberry’s Andrea Baldo and Ryanair’s O’Leary – have warned that Labour’s tax-heavy approach risks discouraging investment at a critical moment for the UK economy.
Ryanair’s results underline the strength of travel demand post-pandemic, but also airlines’ sensitivity to government tax policies and fuel costs. With profits rising and fleet expansion accelerating, the company is poised for another record year – even as its combative chief executive continues to set his sights on Westminster.
As O’Leary put it: “For Britain, you don’t solve a growth problem by taxing the people and industries that drive it.”
