British travelers are preparing for a significant increase in air passenger duty, scheduled for April 2025, followed by another rise in April 2026. This decision, orchestrated by the Chancellor of the Exchequer, aims to boost state revenue by directly impacting the wallets of holidaymakers and professionals. So, what will this mean for your next flight? Let’s explore together the consequences of this increase on airline tickets and the entire aviation sector.
A tax that is becoming heavier #
The Air Passenger Duty (APD), in force in the United Kingdom since 1994, is already known for being the highest air tax in the world. Currently, it is collected by airlines at the time of ticket purchase and paid to the Treasury. The new APD rates, which will take effect in 2025 and 2026, will result in significant increases of up to £2 for short-haul flights in economy class, while private jet owners will face a 50% hike.
How is the tax applied? #
The application of the APD is not uniform. Indeed, the amount of tax varies depending on several factors such as travel class and destination. Different rate bands are distinguished:
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The domestic band
This band applies to flights departing from and arriving at the four nations of the United Kingdom: England, Scotland, Wales, and Northern Ireland.
Band A
This category covers flights to destinations in the European Economic Area (EEA) and other short- to medium-haul destinations, including Albania and Turkey.
Band B and Band C
Band B flights extend between 2,001 and 5,500 miles, serving countries such as Egypt and the Maldives, while Band C pertains to journeys beyond 5,500 miles, including countries like Australia and New Zealand.
What will be the impact of this increase? #
The proposed increases in the APD are likely to cause a jump in the total cost of airline tickets. Currently, passengers in economy class already pay amounts ranging from £7 to £607 depending on the destination. Starting in 2025, these rates will rise, exceeding £84 for domestic flights, and reaching up to £673 for Band C.
Passengers in premium classes will also feel the effects of this increase, with hikes potentially reaching £1,141 for long-haul flights. Airlines will need to manage this additional cost, which could result in a increase in ticket prices or even a reduction in flight frequencies on certain routes.
The consequences for the aviation industry #
The aviation sector will not be the only one impacted by this increase. Businesses in the tourism sector, especially travel agencies, as well as airlines, may see their business decline if fares become too high for many travelers. Indeed, tax hikes of this nature often have a deterrent effect on travel plans and may lead passengers to choose cheaper alternatives such as trains or cars.
What alternatives are available for travelers? #
With the increase in the APD, travelers will be forced to rethink their travel options. One alternative could include planning closer vacations by choosing domestic or European destinations. Furthermore, the development of land transport and high-speed trains could present a fallback option for medium-haul journeys, offering a more economical and environmentally friendly solution.
Finally, if you are planning a trip abroad in 2025 or 2026, it might be wise to book early to face these increases and take advantage of current prices before they rise.
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