Latest news with #Sorahan
Business Recorder
19-05-2025
- Business
- Business Recorder
Ryanair would expect Boeing to honour contract price if EU imposes tariffs
DUBLIN: Ryanair would expect Boeing to honour the agreed prices on current aircraft orders even if the European Union imposes reciprocal tariffs, a senior executive at Europe's largest low-cost carrier said on Monday. 'We've a fixed price with Boeing and our suppliers, and we've been very much of the view if tariffs come to pass … we would expect our suppliers to honour the fixed prices,' Chief Financial Officer Neil Sorahan told Reuters in an interview. Ryanair may cut more flights from small Spanish airports, El Economista reports 'If we were to see an increase in our prices, then we'd have to reserve our right to delay, cancel, or buy elsewhere,' said Sorahan, whose airline is one of Boeing's largest customers.
Yahoo
27-01-2025
- Business
- Yahoo
Slash taxes rather than expanding Heathrow, Ryanair tells Reeves
Rachel Reeves should cut taxes rather than back Heathrow expansion if she wants to boost the economy, Ryanair's finance chief has said. Neil Sorahan said scrapping a planned increase in airline passenger tax would do far more to encourage short-term growth than building a new runway at Heathrow. Mr Sorahan said halting the increase in the departure tax would boost passenger numbers and bolster the argument for investment in airports. By contrast, capital-spending projects such as building a new runway at Heathrow would 'take forever' to yield results. Planned increases in air passenger duty (APD) announced in the Budget mean Ryanair is cutting UK flights just as the Chancellor seeks to stimulate the economy. Mr Sorahan said: 'It's a strange message to be sending out, that 'costs are going up but we're going to put more runways in place'. 'If they [ministers] really want growth in the short term the easiest thing they can do is reduce APD. That will bring more flights into the UK that will back up their case for more runway capacity.' The comments come after the Chancellor gave the strongest hint yet that she will back a third runway at Heathrow, telling the BBC she is prepared to make tough decisions in pursuit of economic growth. Ms Reeves is expected to signal Labour's support for the runway and expansion of Gatwick and Luton airports in a speech this week. Mr Sorahan said Ryanair's business in Britain will be 'broadly flattish' this summer but said the budget airline will fly fewer routes and serve those still in service less frequently from 2026 as the ramp up in APD takes said: 'You'll start to see capacity going out unless there's some meaningful movement by the Government.'They aren't helping themselves with these tax increases. It was a short sighted decision because it makes the marginal costs of operating in the UK uncompetitive.' He added: 'I have nothing against the UK but it's not competitive at the moment and we have to put the capacity where the best opportunities are.' Michael O'Leary, the Ryanair chief executive, has called Ms Reeves decision to raise APD 'idiotic' and said in November the Chancellor 'has no clue how to deliver growth in the UK economy'. Mr Sorahan's comments came as Ryanair cut its passenger target for the coming year for the second time since November, predicting it will carry 206m people in the 12 months from April, 9m fewer than first planned. The Irish airline will cut flights to parts of Germany and Spain this summer, while boosting services to Italy – now its largest market ahead of the UK – Sweden and East European nations including Poland and Slovakia. As well as tax increases, Mr Sorahan said the situation has been made more acute by a chronic shortage of aircraft following a production crisis and strike at is owed 38 planes by the US manufacturer that should have arrived by the end of 2024. Only nine of that total are expected to arrive by the summer. Mr Sorahan said: 'Much as I wish we had an endless supply of aircraft, we don't. We've got shareholders and we have to get the best returns we can.' Ryanair said its profit could fall 20pc in the 12 months ending in March as a result of the plane shortage, price cuts on a number of routes, sluggish economies and high interest rates. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
