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Ryanair chief executive Michael O’Leary has accused the UK chancellor of lacking any real understanding of how to grow the economy, as the airline announced a 42% jump in half-year profits driven by fare increases.
Speaking on Sky’s Mornings with Ridge and Frost, O’Leary criticised Rachel Reeves, saying she “hasn’t the faintest idea how to deliver growth,” and attacked her plan to raise air passenger duty next April. He urged her to scrap the proposed tax rise in her upcoming 26 November budget speech, warning that it could further discourage private sector investment.
“Until she stops imposing these ridiculous taxes and targeting wealth, the UK economy will continue to struggle,” he said. “Ironically, that might actually benefit Ryanair, as more price-conscious travellers will choose to fly with us.”
The remarks came after Ryanair, Europe’s largest airline by passenger numbers, posted after-tax profits of €2.54bn (£2.2bn) for the six months ending September — a 42% year-on-year increase. The results exceeded expectations following a rebound in fares during the second quarter, recovering from a 7% drop in the previous financial year.
The airline reported a 9% rise in revenue per passenger, driven by a 13% hike in ticket prices and higher earnings from extras such as baggage and seat selection fees. Passenger numbers also hit a record 119 million for the summer-heavy half-year period, and the company expects fares to remain strong through the end of the financial year despite some seasonal discounting.
Thanks to earlier deliveries of more fuel-efficient Boeing jets and robust travel demand, Ryanair raised its annual passenger forecast to 207 million, up from 206 million.
O’Leary cautioned investors, however, that while forward bookings for the third quarter — particularly for the October mid-term break and Christmas season — were slightly ahead of last year, tougher comparisons in the second half could make fare growth harder to sustain.
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