Aviation giant Ryanair has threatened to cut hundreds of UK flights - if chancellor Rachel Reeves raises taxes.
Boss Michael O'Leary warned any increase in air passenger duty (APD) would negatively impact customer demand and, in turn, make some routes unviable.
The Telegraph reports Mr O'Leary as saying: “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.”
It comes as Ryanair axed 12% of its routes in Germany due to higher taxes.