Ryanair, a budget airline, has announced it will cut capacity by 16 per cent by November. This cut will reduce Ryanair passengers from UK airports by 2 million.
The service cuts will occur at most of it’s UK bases including Liverpool, Birmingham, and Belfast. Chief executive, Michael O’Leary, blamed the cuts on two factors. High take-off and landing charges such as those at BAA-run airports like Stansted are hurting the airline. The biggest factor for the cuts is the Air Passenger Duty which raised 2 billion pounds last year.
The Duty is suppose to rise in November the same time Ryanair is scheduled to reduce their passenger capacity. O’Leary stated that plans are to switch its planes to places where passenger duty has been cut or scrapped. With an increase of over 3 million passengers in the first half of last year, the reduction in capacity “shows how damaging the tourist tax and high airport charges are to tourism and jobs.”