Published on
November 3, 2025
Europe faces risk in aviation and travel growth as Ryanair and Wizz Air warn that rising UK taxes could limit expansion and force them to shift operations to more cost-effective markets. Both airlines have expressed concerns that the increasing financial burden from higher Air Passenger Duty (APD) and rising airport charges in the UK will make it less competitive for them to operate in the region. These escalating costs could lead to reduced flight services, particularly on domestic and regional routes, and may prompt both carriers to redirect aircraft to markets where operating conditions are more favorable, ultimately stalling the growth of the UK’s aviation sector.
Two of Europe’s most prominent low-cost carriers, Ryanair and Wizz Air, have issued stark warnings regarding the increasing financial burden that the aviation sector is facing in the UK. Both airlines have expressed concerns that the UK’s higher taxes and rising airport charges could limit their growth in the country and force them to redirect operations to markets that are more economically viable. According to reports from the Financial Times, both carriers have emphasized that if the tax hikes continue, they may scale back their services within the UK and potentially shift aircraft to regions offering better financial conditions for air travel.
The Impact of Rising Air Passenger Duty (APD) on UK Airlines
The fears of Ryanair and Wizz Air stem from the UK government’s decision to increase flight taxes in the Autumn Budget of 2024. Chancellor Rachel Reeves unveiled a series of increases in Air Passenger Duty (APD), which will come into effect in 2026. These hikes will see the cost of flying rise significantly for passengers, with the cheapest seats increasing by approximately $2.63 (£2), and a dramatic 50% rise for private jets.
The UK government has justified the increase as necessary to address inflationary pressures. However, both airlines argue that such significant rises will erode the UK’s competitiveness in the global aviation market. Given that APD in the UK is already among the highest in the world, these new hikes are seen as a direct threat to the future growth of the aviation sector in the country.
APD Increase: What Travelers Can Expect
The new tax structure, effective from April 2026, will impact both domestic and international flights. Economy passengers on domestic flights will pay around $10.52 (£8), which is an increase from the current rate of $9.21 (£7). For short-haul international flights, the tax will rise to $19.73 (£15) for the lowest class of travel. Long-haul passengers will see even steeper rises, with taxes climbing as high as $139.44 (£106) for flights over 5,500 miles.
For premium-class passengers, the taxes will be even more substantial. The most expensive long-haul flights, over 5,500 miles, will see a rise to as much as $1,500 (£1,141). These increases are set to put pressure on passengers, airlines, and the broader UK aviation industry, as higher taxes often translate to higher ticket prices.
The Strain on Airline Operations and Potential Flight Cancellations
Ryanair and Wizz Air have voiced their concerns regarding how the rising costs will affect their operations within the UK. The increases in APD are seen as a major obstacle to future growth, particularly in a time when airlines are trying to recover from the pandemic’s financial fallout. Ryanair, in particular, has been vocal about the risks associated with such tax hikes. The airline has warned that if these increases continue, it may redirect its operations and aircraft orders to countries with lower taxes.
For example, Ryanair has already reduced its services from Newquay, Cornwall, shifting focus to Sweden, where air passenger duty has been abolished altogether. With around 300 new aircraft on order, Ryanair has made it clear that its future growth will depend on where it can operate most profitably, and the UK’s high taxes could push it to expand in more competitive markets.
Ryanair’s schedule adjustments across Europe illustrate how tax increases are already impacting operations. In Germany, the airline has cut over 800,000 seats and canceled 24 routes across nine airports in response to a 24% increase in aviation tax. Similarly, in France, Ryanair scaled back its capacity by 13% for the winter 2025/26 season, eliminating approximately 750,000 seats and 25 routes due to an increase in France’s TSBA air tax.
The Wider Economic Impact of Rising Charges
The impact of rising aviation taxes is not limited to the airlines themselves. Airport operators are also sounding the alarm about the growing financial strain. London Gatwick Airport, for example, has warned that higher business rates and taxes could significantly affect its ability to make investment decisions, including its plans to expand with a second runway. Higher charges could make it more difficult for airports to justify future investments, which in turn could have a detrimental effect on the entire UK aviation infrastructure.
According to AirportsUK, each aircraft based in the UK supports around 400 jobs and contributes approximately $35 million (£27 million) to the economy annually. With the possibility of higher taxes and fees, this economic contribution could be threatened. Airports and airlines are concerned that, if this trend continues, the UK’s position as a global aviation hub could diminish, affecting both jobs and the broader economy.
Challenges at Regional Airports
Regional airports in the UK are likely to be the hardest hit by these tax increases. Low-cost carriers like Ryanair and Wizz Air are often a crucial part of regional airports’ operations, offering affordable routes to major European destinations. As the taxes rise, the cost burden will be disproportionately felt by these smaller airports, where air travel is a vital economic driver.
Ryanair, for instance, has already reduced capacity in Spain, cutting two million seats, and withdrawn services from Jerez and Valladolid due to “excessive” fees charged by the airport operator Aena. Similarly, in Latvia, the airline has slashed its capacity from Riga by 160,000 seats and eliminated seven routes, citing uncompetitive airport costs.
The fear is that as taxes and fees increase across the UK, regional airports could lose the vital services they rely on, which would lead to fewer routes, higher fares, and reduced connectivity for passengers. The combination of higher taxes and airport charges could result in a reduction in domestic flights and greater reliance on long-haul travel, which tends to be less economically viable for low-cost carriers.
Future Outlook for UK Aviation
The rising tax burden on the aviation sector is a growing concern for both airlines and airports, particularly as they work to recover from the financial challenges of the past few years. Ryanair and Wizz Air’s warnings highlight the potential for a shrinking aviation market in the UK if the tax increases continue. These concerns are compounded by the fact that APD in the UK is already among the highest in the world, with the increase set to drive up ticket prices and deter international investments.
As the aviation industry watches closely, the UK government will need to strike a delicate balance between generating revenue through taxes and maintaining a competitive market for airlines and passengers. Should the tax burden become too high, it could lead to fewer flights, higher fares, and potentially the relocation of aircraft to more cost-competitive markets. The challenge for policymakers will be to ensure that the UK remains an attractive destination for both airlines and tourists while addressing the broader economic concerns tied to aviation taxes.
Europe faces risk in aviation and travel growth as Ryanair and Wizz Air warn that rising UK taxes could limit expansion and shift operations. The airlines argue that higher taxes and airport charges could make the UK less competitive, leading to reduced services and flight cancellations.
The future of UK aviation hinges on finding a sustainable way forward that allows for the growth of the sector while keeping costs in check. With higher taxes on the horizon, both airlines and airports are bracing for a challenging road ahead. Only time will tell how these rising costs will impact the UK’s position as a leading player in the global aviation market.
