Michael O'Leary, Ryanair's CEO, stated: "If they raise APD again on domestic flights then there will be a cut in capacity, no question. These routes are not particularly profitable, they barely break even." His comments underline the precarious balance of profitability in domestic flight routes and the potential impact of increased taxes.
O'Leary described APD as "a penal tax on the poor" and warned any tax increases could deter tourists and undermine investments in regional UK airports, emphasizing the necessity of keeping travel affordable for average passengers.
In reference to the need for government support, O'Leary highlighted, "In a post-Brexit environment, the UK needs to stimulate inward tourism." He insisted that policies promoting growth in the aviation sector are crucial for economic benefits.
O'Leary, reflecting on Ryanair's capacity shifts, noted, "The airline slashed 12% of its capacity in Germany due to higher taxes, demonstrating our willingness to move resources when routes become unviable." This speaks volumes about Ryanair's adaptability to fiscal pressures.
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