Ryanair Chief: UK Economy ‘Doomed’ Under Labour

Published: 03 November 2025. The English Chronicle Desk. The English Chronicle Online.

Ryanair’s outspoken chief executive, Michael O’Lear,y has launched a scathing attack on the Labour government, declaring that the UK economy is “doomed” under the current leadership and warning that punitive tax policies could cripple business growth. His remarks came just weeks before the highly anticipated UK budget announcement, scheduled for 26 November, as the airline reported a significant surge in first-half profits.

O’Leary accused Chancellor Rachel Reeves of abandoning her pledge to prioritise economic expansion, claiming that the government’s fiscal strategy threatens to stifle productivity and investment. “The UK economy under the current leadership is doomed,” he said. “The country badly needs growth, but the way to deliver growth is through selective tax cuts. You are not going to grow the UK economy by taxing wealth or by taxing air travel.”

The comments come as the aviation sector braces for a potential increase in Air Passenger Duty (APD), a levy imposed on all flights departing from UK airports. Industry leaders fear that the Labour government may raise the duty once again in the upcoming budget, pushing ticket prices even higher for passengers.

Currently, APD adds as much as £2 to short-haul economy fares, and the tax is set to rise on 1 April. Airlines typically pass the cost directly to customers, leading to concerns that further increases could make flying less affordable for British travellers and undermine the competitiveness of UK airports.

O’Leary warned that if APD were raised again, Ryanair and other carriers could shift operations away from smaller British airports to European markets with more business-friendly tax regimes such as Sweden and Italy. “I hold very little faith in Rachel Reeves or the current economic strategy of the Labour government,” he said. “The threat of higher wealth taxes is already driving investment away from London.”

In his typically blunt style, O’Leary added that “rich people are fleeing the country as they try to find low-fare flights to get the hell out of London before Rachel Reeves taxes their mansions, their income, and their inheritance.”

Despite his criticism of UK fiscal policy, Ryanair continues to post robust financial results. The Dublin-based airline, which employs around 26,000 people globally, announced a €2.5 billion (£2.2 billion) after-tax profit for the first half of its financial year—an impressive 42% increase compared with the same period last year. The airline carried 119 million passengers, up 3% year-on-year, buoyed by strong demand for leisure travel and an accelerated delivery schedule of new Boeing 737 aircraft.

Average airfares rose by 13% to €58, helping to drive record profitability, though O’Leary cautioned travellers not to expect prices to fall anytime soon. “Short-haul European air fares are going to modestly increase for the next four or five years,” he said. “You’re going to see, not just at Ryanair but across the entire industry, modest price increases continuing through 2027 and 2028.”

The airline’s growth trajectory remains strong, with forecasts predicting passenger numbers will climb beyond expectations in the next fiscal year. Ryanair now projects it will carry 207 million passengers in its 2026 financial year, up from the previous forecast of 206 million.

Analysts attribute Ryanair’s resilience to its low-cost business model, efficient fuel usage, and aggressive expansion strategy, particularly in continental Europe where it continues to outpace competitors. However, industry experts warn that persistent increases in taxation and environmental levies could eventually erode the advantages enjoyed by budget carriers.

O’Leary’s criticism of the Labour government adds to growing tension between Britain’s business community and Westminster policymakers, who have clashed over proposed tax reforms and economic forecasts. While Reeves has vowed to “rebuild the economy on a foundation of fairness and responsibility,” O’Leary insists that excessive taxation and regulation are stifling the entrepreneurial spirit Britain once championed.

“Instead of punishing success, the government should be incentivising it,” he said. “Tax cuts drive growth, they attract capital, and they keep skilled workers in the country. Right now, the opposite is happening.”

Beyond taxation, O’Leary also voiced frustration with European Union proposals requiring airlines to permit passengers to bring two free cabin bags on flights, calling the move “impractical” and “unrealistic.” He argued that such a rule would create logistical chaos, as aircraft simply do not have the overhead space to accommodate two free bags per passenger.

“The EU is trying to regulate something that cannot physically be done,” O’Leary said. “It’s another example of bureaucrats who don’t understand how air travel works making life harder for both passengers and airlines.”

Ryanair’s record profits come at a time when the aviation industry is still navigating the challenges of rising fuel costs, labour shortages, and environmental pressures. Nevertheless, the airline’s continued success stands in sharp contrast to O’Leary’s dire assessment of the UK’s economic prospects under Labour leadership.

Critics of O’Leary argue that his remarks are politically charged, pointing out that the Labour government inherited deep structural issues after years of sluggish productivity and post-Brexit disruptions. Others, however, share his concerns that further taxation could deter foreign investment and accelerate a capital flight from London’s financial and corporate sectors.

As the 26 November budget approaches, attention will turn to whether Reeves’ fiscal plans include fresh levies on air travel or wealth, and how that might affect both the aviation sector and Britain’s fragile recovery. For O’Leary, the stakes could not be higher: “If the UK doesn’t start supporting growth,” he warned, “it risks flying straight into an economic storm.”