Chief executive Michael O’Leary says visitors are already being taxed when they fly from the UK through Air Passenger Duty (APD), and argues that adding a levy to hotel stays would amount to taxing tourists twice.

“You can’t tax tourists on the way into the UK and then double tax them for the hotel night,” O’Leary told reporters.

The airline is calling on Prime Minister Andy Burnham’s government to abolish APD if it goes ahead with plans to give mayors powers to introduce a visitor levy.

For passengers flying economy on short-haul routes, including those between the UK and Portugal, APD currently stands at £15 per passenger. The rate increased from £13 in April.

Ryanair warns it could move aircraft elsewhere

O’Leary said Ryanair is still expanding in the UK this year, but warned that could change if the additional tourism tax goes ahead.

The airline is already moving capacity towards countries where it believes aviation taxes are more favourable, he said.

Ryanair has not announced which UK airports or routes could be affected, and there is currently no indication that flights between Britain and Portugal are specifically being targeted.

However, O’Leary said the airline could start taking capacity out of the UK, rather than continuing to expand there.

He pointed to countries including Sweden, Slovakia, Hungary, Albania and Italy as examples of markets where aviation taxes have been reduced or removed.

Ryanair says that if the UK abolished APD, it would respond by adding 30 aircraft at British airports, opening 200 routes and creating 10,000 jobs. Those figures are the airline’s own projections rather than government estimates.

What passengers currently pay

Air Passenger Duty is charged on passengers departing from UK airports, with the amount depending on the destination and class of travel.

Since April, the reduced rate for a short-haul international flight has been £15. Domestic passengers pay £8, while economy passengers travelling further afield can pay £102 or £106 depending on the distance.

Those charges are already scheduled to increase again from April 2027. Short-haul economy APD will rise from £15 to £15.49, while the domestic rate will increase from £8 to £8.26.

The government says the increases are linked to inflation and are intended to ensure aviation continues to make a contribution to public finances.

O’Leary sees things differently, arguing that lower aviation taxes would encourage airlines to add flights and bring more visitors into the country.

For now, Ryanair is still growing its UK operation.

But with another potential tourism tax being discussed, the airline is making it clear that future aircraft and routes could just as easily go somewhere else.

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