What's happened
Ryanair's CEO Michael O’Leary criticizes the UK government’s economic strategy and potential air passenger duty increases, warning of flight and airport relocations. The airline reports strong profits and passenger growth, citing Boeing deliveries and demand, amid EU rules he deems problematic.
What's behind the headline?
The recent comments from Michael O’Leary highlight a tension between airline profitability and government policy. Ryanair’s profits and passenger growth demonstrate resilience amid external shocks, such as Boeing strikes and economic uncertainties. However, O’Leary’s critique of UK tax policies and EU baggage rules reveals a strategic push to influence policy in favor of airline interests. The warning about potential relocations underscores how fiscal and regulatory measures can impact the UK’s aviation sector, possibly leading to economic shifts. This story signals that airline industry stakeholders are actively shaping policy debates, with implications for consumers and the UK economy. The forecast suggests continued fare increases and passenger growth, but external geopolitical and regulatory risks remain significant.
What the papers say
The Guardian reports that Ryanair's CEO Michael O’Leary criticizes the UK government’s economic strategy and air taxes, warning of potential airline relocations. The Independent emphasizes the airline’s profit rise and passenger growth, citing Boeing deliveries and demand. Sky News highlights Ryanair’s record profits and cautious outlook on fare growth, noting external risks like geopolitical conflicts and air traffic strikes. All sources agree on Ryanair’s strong financial performance but differ in their focus—The Guardian on policy criticism, The Independent on financials, and Sky News on operational outlook and risks.
How we got here
Ryanair, Europe's largest airline by passenger numbers, reported a 40% increase in profit to €2.9 billion in the first half of 2025, driven by higher fares and increased passenger numbers. The airline has benefited from earlier Boeing aircraft deliveries and strong demand, despite disruptions from Boeing worker strikes in late 2024. The UK government is considering raising air passenger duty (APD), which could increase costs for airlines and passengers, prompting concerns about airline relocations and economic impacts. O’Leary has publicly criticized the UK’s economic policies and EU proposals on cabin baggage limits, arguing they will lead to higher costs and delays.
Go deeper
Common question
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How Are UK Air Taxes and Policies Impacting Airlines Like Ryanair?
Recent developments in UK air taxes and government policies are stirring up the airline industry. Airlines like Ryanair are voicing concerns over rising costs and potential relocations, while also experiencing strong profits. Curious about how these policies affect your travel plans and the future of UK aviation? Below, we answer key questions about the economic impact of these changes and what they mean for airlines and passengers alike.
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Ryanair DAC is an Irish budget airline founded in 1984, headquartered in Swords, Dublin, with its primary operational bases at Dublin and London Stansted airports.