Ryanair CEO O’Leary attacks EU competitiveness policy, urges taxes on U.S. and Asian airlines

EASTORA REPORT | Ryanair CEO Michael O’Leary accused the European Union of failing on competitiveness and called for environmental charges to be extended to airlines flying into Europe from the United States, Asia and China.

In an interview with Euronews’ Europe Today on Tuesday, O’Leary criticized European Commission President Ursula von der Leyen and the European Parliament, arguing that EU regulation was increasing air-travel costs while consumers wanted lower fares.

O’Leary pointed to Mario Draghi’s 2024 report on European competitiveness, saying it had been “sitting on the shelf” for two years and that none of its recommendations had been implemented. Independent assessments show that some recommendations have been implemented or are progressing, although major parts of the agenda remain unfinished.

He also criticized the EU’s aviation emissions system for imposing carbon costs primarily on flights within Europe while treating many extra-European flights differently. O’Leary said American, Asian and Chinese flights accounted for more than 53% of Europe’s aviation CO2 emissions and argued that airlines arriving from outside Europe should also be taxed.

“If you’re serious about competitiveness, tax the Americans when they land here in Europe,” O’Leary said.

His comments came as Ryanair announced plans to cut one million seats and 20 routes from Belgium this winter following an increase in the country’s air-passenger tax. O’Leary said Belgium, France and Germany were not competitive and warned that European airfares would rise significantly in 2027 as higher fuel costs feed through to ticket prices.