Ryanair could axe hundreds of UK flights if Chancellor Rachel Reeves raises aviation tax in the upcoming Budget, the airline has warned.

CEO Michael O'Leary said any increase in air passenger duty would not only hurt customers but undermine the viability of some routes.

This would spark inevitable cut-backs for Ryanair, he said, as he singled out the prospect of the Chancellor increasing APD on internal flights.

Mr O’Leary said: “If they raise APD again on domestic flights then there will be a cut in capacity, no question. These routes are not particularly profitable, they barely break even.”

His comments come after Ryanair slashed 12% of its capacity in Germany in protest against higher taxes, The Telegraph reports.

The Chancellor is yet to announce what levies she will raise in the Budget later this month, although she has signalled that “difficult ” decisions lie ahead as she attempts to fill a £22bn “black hole” in the economy.

'APD is a penal tax on the poor'

Speaking in Brussels at a gathering of European airline chiefs, Mr O'Leary said that increasing APD,  which currently stands at £7 for internal flights, would put more of a burden on ordinary passengers.

He shared: “APD is a penal tax on the poor. The rich don’t care. In a post-Brexit environment, the UK needs to stimulate inward tourism.”

Mr O’Leary said that while the Government was making encouraging noises about aviation and appeared serious about expanding Britain’s airport infrastructure, he would be reserving judgment on the Chancellor until the Budget.

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He added: “They’re running around in circles a bit. They’ve overemphasised the black hole in the economy and the need to tax or cut, so let’s see what she does.

“What’s wanted is a competent administration with some pro-growth policies and no more whining about how we don’t want any more air travel and how Boris Johnson is going to lie down in front of the digger if a runway gets built.

“Sir Keir Starmer has said it’s about growth and competitiveness. If he wants to deliver growth the easiest way to deliver it is with aviation and tourism, because we can move planes around and turn that tap on almost straight away.”