Chancellor Jeremy Hunt has announced further increases in the air passenger duty rate paid by those traveling in premium cabins.
Premium economy, business and first class passengers currently pay between £13 (for domestic flights within the UK) and £200 (for longest flights over 5,500 miles departing from the UK).
It had already been announced that this range will increase to between £14 and £202 from April 1, 2024.
But in Spring Budget Hunt confirmed that “the government is making an exceptional adjustment to air passenger duty (APD) rates for non-economy passengers to take account of the high inflation of recent years and help maintain the value of the APDs in real terms.” terms”.
This adjustment will come into effect from April 1, 2025. The rate for premium cabins on domestic flights will remain at the level of £14 from April 1, 2024, but Band A flights (those up to 2,000 miles in length) will increase from £26 to £28.
Band B flights (those between 2,001 and 5,500 miles in length) will see an increase in non-economy APD fares from £194 to £216, while Band C fares (for flights over 5,500 miles in length) length) will increase by £22, from £202 payable from 1 April 2024, to £224 from 1 April 2025.
Fares for economy class passengers will remain broadly the same as those set for April 1, 2024 (between £7 and £92), although there will be a smaller increase for longer flights from April 1, 2025, with Band B and C rates. rising by £2.
Hunt said 70 per cent of travelers would benefit from the frozen fares.
Commenting on the increases, Karen Dee, chief executive of the Airport Operators Association, said:
“It is disappointing to see the Chancellor increase air passenger rates for business travellers, especially when data shows this group has not yet recovered to 2019 levels.
“It is difficult to see how this squares with the government's previous commitment not to increase taxes on aviation.
“Business travelers are responsible for increasing foreign investment in the UK, opening new markets for our goods and services and creating jobs across the country.
“We should encourage them to come to the UK, making it easier for them to invest here, without putting more barriers in their way.”
