EasyJet Boss Warns Budget Tax Hike Could Ground Brits

EasyJet's CEO has issued a stark warning that potential tax increases could significantly dampen demand for international travel among Britons. He expressed hope for a freeze on air passenger duty but conveyed a sense of pessimism about its likelihood, noting that such tax hikes would naturally reduce consumer interest in booking holidays abroad.

The airline's financial performance showed a 9% increase in profits, reaching £665 million for the year ending September, driven by a strong performance in its holiday division. However, EasyJet's stock has experienced a notable slump this year, with shares down 1.5% in recent trading. This decline occurred despite overall revenue growth and falling energy prices, prompting market analysts to note that the airline has not seen the same post-pandemic recovery as some competitors.

Speculation is mounting that the Chancellor may implement increases to air passenger duty and potentially introduce a new 'tourist tax' on accommodation. The airline industry argues that such measures would harm the UK's visitor economy and could make travel inaccessible for many. EasyJet also cited disruptions from the conflict in the Middle East, impacting flights to popular winter sun destinations like Tel Aviv and Jordan, leading to a strategic shift towards other destinations such as Cape Verde and Egypt.