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'Useless' and 'hopeless': Ryanair CEO slams U.K. government over travel tax

1. Ryanair's CEO criticized UK tax hikes on air travel, predicting relocations. 2. Stronger-than-expected profits reported before the UK's Autumn Budget announcement. 3. O'Leary claims increased taxes threaten passenger affordability and regional traffic growth. 4. He suggests abolishing passenger duty outside London to stimulate local economies. 5. Ryanair may relocate to countries with favorable tax policies if APD rises.

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FAQ

Why Bearish?

Increased air passenger duty (APD) could lead to reduced travel demand for Ryanair, impacting revenues. Historical tax increases in airlines often coincide with declines in passenger volumes, as seen in previous economic downturns.

How important is it?

The article addresses critical regulatory changes that could directly influence Ryanair's operational costs and competitiveness. Any significant taxation may deter investments and increase costs, making the news noteworthy for stakeholders.

Why Short Term?

The impact of government policies is imminent with the upcoming budget announcement affecting near-term operations and pricing strategies.

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