Ryanair CEO calls EU chief Ursula von der Leyen ‘useless’ and demands tax on US and Chinese airlines

Ryanair chief attacks EU leadership over aviation taxes and competitiveness

Poinews.com – Ryanair chief executive Michael O’Leary has launched a sharp attack on European Commission President Ursula von der Leyen, arguing that the European Union is undermining its own competitiveness by raising costs for airlines operating within the bloc while leaving overseas rivals outside the same tax regime.

Speaking during a visit to Brussels for the launch of Ryanair’s winter programme, O’Leary said EU climate-related aviation charges create an uneven playing field. He argued that carriers from the United States, Asia and China do not face equivalent levies on the same terms, despite his claim that they account for more than half of aviation emissions linked to Europe.

“Nobody would design a stupid system like this, other than the European Parliament and Ursula von der Leyen. If you’re serious about competitiveness, tax the Americans when they land here in Europe.”

His proposal is for what he described as a “fair and reasonable” tax covering every flight arriving in Europe or departing from it. The central point of his criticism is that charges limited to intra-EU journeys risk making European airlines less competitive while long-haul international operators remain comparatively unaffected.

Criticism of the Commission and the Draghi agenda

O’Leary accused von der Leyen of promoting competitiveness in speeches without delivering practical reform. He dismissed the political direction from Brussels in unusually personal terms, saying:

“Ursula von der Leyen’s afraid to do anything except talk. You know, she’s useless.”

He also targeted the European Parliament’s approach to regulation, claiming lawmakers were producing measures that would push up the price of flying at a time when passengers are seeking cheaper fares.

“You have that ship of fools in the European parliament, redesigning more regulations designed to increase the cost of air travel when consumers want lower fares.”

O’Leary pointed to the Draghi Report as a ready-made plan for strengthening Europe’s economic position. Former Italian prime minister Mario Draghi published the report in September 2024, warning that the EU could face a “slow agony” without sweeping changes. The document called for as much as €800 billion in additional annual investment.

In O’Leary’s view, the recommendations have not been acted upon with sufficient urgency.

“Europe has a road map for being more competitive, it’s called the Draghi Report. Two years later, not one of its recommendations has been implemented and Ursula von der Leyen hides in the Berlaymont doing nothing except giving speeches.”

That assessment contrasts with findings issued last month by the Joint European Disruptive Initiative, which said 26% of the measures proposed by Draghi had been implemented. Its conclusion was that movement had begun, but that the EU was still not advancing at the pace required by global competition.

Belgium cuts underline Ryanair’s response to higher taxes

The airline’s Brussels announcement came with a concrete example of how it responds to national tax decisions. Ryanair is removing one million seats and 20 routes from Belgium’s network after the government led by Bart De Wever increased the country’s air travel tax from €2 to €7 for each ticket.

O’Leary said aircraft would instead be assigned to markets he considers more supportive of aviation growth.

“We’re moving aircraft to those countries who are competitive. Belgium is not competitive. France is not competitive. Germany is hopelessly uncompetitive.”

The comments illustrate the commercial pressure behind the airline’s lobbying. Low-cost carriers rely heavily on keeping operating expenses down, and ticket taxes can affect route economics, especially on services where fares are low and margins are tight. For travellers, the practical consequence can be fewer available seats, reduced route choice, or higher prices where airlines decide that a market has become less attractive.

Oil market pressure points to higher fares in 2027

O’Leary also warned that passengers should prepare for a significant increase in airfares in 2027, driven by higher oil prices. Ryanair has protected itself from current price volatility by fixing this year’s fuel costs in advance at roughly $67 per barrel. That arrangement, known as fuel hedging, limits the immediate impact of rising market prices.

However, the protection is expected to expire next year, and O’Leary said the airline anticipates its fuel price could double once the existing hedge no longer applies.

“We guarantee no fuel surcharges, but there is no doubt that airfares are going to rise significantly in 2027 because of much higher oil prices.”

The warning arrives as conflict in the Middle East has intensified pressure on global oil markets. Brent crude, a major international benchmark, closed at $109.86 per barrel on Friday, its highest closing price since May. It later moved above $110 as attacks on tankers raised fears over supplies moving through the Persian Gulf.

For airlines, fuel is one of the largest costs of operating a flight. When oil prices rise for a sustained period, carriers may seek to recover part of that expense through fares, route adjustments or reduced capacity. Ryanair’s message is that its current fuel arrangements provide temporary insulation, but that the effect on ticket prices may become far more visible once those contracts end.

O’Leary’s intervention therefore combines two connected arguments: European aviation faces rising costs from policy decisions at home, while the next stage of the oil market shock could add another major burden. His call for taxes on all flights entering or leaving Europe is intended to shift the debate from charges on EU-only travel toward a broader system that he says would be more competitive and more evenly applied.