Ryanair boss Michael O’Leary has launched a stinging attack on Chancellor Rachel Reeves, claiming her tax policies are “dooming” Britain’s economy, even as his budget airline posted record half-year profits fuelled by rising ticket prices and surging passenger numbers.
Speaking at the airline’s results presentation, O’Leary accused the Labour government of pursuing policies that would deter investment and weaken growth. “Rachel Reeves is on the wrong path,” he said. “The UK economy is, under the current leadership, doomed. I hold very little faith in Rachel Reeves or the current economic strategy of the Labour government.”
The outspoken Irish executive said Labour’s decision to tax wealth and raise air passenger duty (APD) would hurt tourism, business and the wider economy. “You are not going to grow the UK economy by taxing wealth or by taxing air travel,” he said. “You need to reverse those taxes as quickly as possible.”
O’Leary added that Reeves must “learn from her mistakes” and focus on stimulating tourism and spending rather than penalising it. “The way to grow is not by increasing entry taxes, which is what APD is,” he said. “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.”
When asked whether he thought Reeves might change course, O’Leary replied bluntly: “She’ll f*** it up some more.”
The attack came as Ryanair reported record results for the six months to September, with profits surging 42 per cent to €2.54 billion, driven by a 13 per cent increase in average ticket prices and robust summer demand. Pre-tax profits climbed 40 per cent to €2.89 billion, well ahead of market forecasts of €2.5 billion.
Revenue rose 13 per cent to €9.8 billion, as passenger numbers increased 3 per cent to 119 million. The average fare per passenger reached €65, reflecting a combination of higher demand and reduced competition in short-haul European travel.
The airline said it expects to carry 207 million passengers over 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. Nearly one-third of Ryanair’s 636-strong fleet now consists of the fuel-efficient Max jets, which allow it to fly more passengers at lower cost.
Despite slower growth in add-on charges for extras such as baggage, which rose just 3 per cent, Ryanair described its performance as “record-breaking” and said it expected to recover from last year’s 7 per cent decline in fares.
“We cautiously expect to recover all of last year’s fare decline, which should lead to reasonable net profit growth for the full year,” the company said.
O’Leary’s comments highlight the growing tension between corporate leaders and the Labour government ahead of the November Budget, in which Reeves is expected to set out measures aimed at boosting growth while closing a £27 billion fiscal gap.
While businesses have praised her focus on stability, several high-profile executives — including Mulberry’s Andrea Baldo and Ryanair’s O’Leary — have warned that Labour’s tax-heavy approach risks deterring investment at a critical moment for the UK economy.
Ryanair’s results underline the strength of post-pandemic travel demand, but also the sensitivity of airlines to government fiscal policy and fuel costs. With its profits soaring and fleet expansion accelerating, the company is positioned for another record year — even as its combative chief executive continues to take aim at Westminster.
As O’Leary put it: “For the UK, you don’t fix a growth problem by taxing the people and industries that drive it.”
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Ryanair chief attacks Reeves’ tax plans as profits soar to record €2.5bn