UK airports will have to cut airlines' fees in order to keep attracting flights as taxes increase, Ryanair Holdings PLC's chief financial officer has warned
The airline signalled last week that capacity across the UK could be cut by up to 10% following news in the Budget that air passenger duty would increase from 2026.
“It’s the regions that will really suffer,” Neil Sorahan said on Monday, “we will talk to our airport partners. Those conversations will have to take place”.
Flights from Ryanair’s main base Stansted will likely be secure, he added, though services elsewhere could be under threat.
“Everybody has to look at their cost base. If there are better opportunities elsewhere then we will chase them.
“They’ll have to look at how they stimulate volume for ourselves and other airlines.
“Airports don’t make money from landing and handling charges but they do make a lot of money from their shopping mall, their car park, their hotel.”
His comments came after Ryanair earlier on Monday unveiled a drop in profit on the back of lower fares and growing costs related to Boeing Co (NYSE:BA, ETR:BCO) issues.
Shares fell 1% on Monday.