The boss of EasyJet boss has warned the Chancellor against hiking flight taxes in the Budget as he said it would knock demand from holidaymakers.
The comments from Kenton Jarvis come ahead of Rachel Reeves' statement to Parliament on Wednesday and as the low-cost carrier launches 16 new routes from eight 海角视频 airports.
There have been rumours Ms Reeves will increase air passenger duty, which is a tax on flights leaving the 海角视频, tomorrow.
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Mr Jarvis said the duty on 海角视频 flights was already “one of the highest in Europe”. He is hoping Ms Reeves will freeze air passenger duty, cautioning that any increase would “naturally dampen demand”.
His comments came as the group recorded a better-than-expected annual profit haul as strong demand for its package holidays helped offset more difficult trading for its airline.
The Luton-based group posted a nine per cent rise in headline pre-tax profits to £665m for the year to September 30, up from £610m a year earlier.
Its growing holidays business was the star performer, with annual earnings surging 32 per cent to £250m, seeing the group meet its earnings target early.
This resulted in the group hiking the earnings target for its holidays arm to £450m by 2029-30.
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But annual headline profits at its airline dropped to £415m from £420m the previous year, and it said the carrier’s performance has been “more challenging” to improve than previously hoped, particularly over winter.
It said this was due to “the pace of route maturity and the wider geopolitical, macro-economic and competitive environment in specific markets”.
EasyJet cut seat capacity growth for its airline for the year ahead to around seven per cent, down from nine per cent in 2024-25. Shares in easyJet fell three per cent despite the profits rise.
The news follows the announcement of 16 new EasyJet routes from the 海角视频 next summer.
The airline’s expansion into sub-Saharan Africa continues as it adds its third route from the 海角视频 to Sal in Cape Verde from Bristol, joining existing services from London Gatwick and Manchester. Flights from Bristol will take off from May 1 and operate on Mondays, Wednesdays, and Fridays.
The carrier is also offering new routes from Bristol to Bari, in Italy, with flights starting from April 18, and to Seville, in Spain, from May 2.
From Manchester, the airline is launching new flights to Montpellier, in France, on March 30 and to Preveza, in Greece, on June 24. From Liverpool, two new routes will take off to Lisbon, in Portugal, on March 31 and Paphos, in Cyprus, on August 2.
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Elsewhere, new Newcastle flights to Tenerife will start on August 1, meaning next summer the airline will now offer 20 routes from the airport, where it is set to open a new three-aircraft base next spring.
The carrier is also launching a number of routes at other 海角视频 airports including in Birmingham and Glasgow.