New UK budget makes flights more expensive

Air Passenger Duty will increase in line with inflation despite pressure from airlines

A British Airways plane prepares to land at Heathrow Airport. Reuters

Flights are getting more expensive, as the UK budget confirmed that the Air Passenger Duty is set to rise in line with inflation.

Long-haul flights will be pricier despite a pre-budget push by travel industry executives for unlinking the tax from the Retail Price Index.

The UK is experiencing rampant inflation of more than 10 per cent, meaning any link to inflation is keenly felt, even if the actual figures involved are relatively small.

“APD [Air Passenger Duty] rates will increase in line with RPI for 2024-25 rounded to the nearest pound, meaning that short-haul international rates remain frozen, benefiting more than 70 per cent of passengers,” the budget said.

“Following a 50 per cent cut in APD for domestic flights in 2023-24, the rate for domestic flights will increase by 50p to £7. The long-haul and ultra-long-haul economy rates will increase by £1.”

With APD linked to RPI, the per-passenger fee can soon add up, especially for families going on holiday.

The cost varies depending on the departure airport and the destination but for places such as the UAE, which are more than 2,000 miles — or 3,218km — away, the APD charge is set to rise from £87 to £97.96 per person.

People flying to other popular destinations, such as the US, Cyprus, Egypt and Turkey, have to pay the same fee.

For countries less than 2,000 miles away, which include popular summer holiday destinations across Europe, the pre-budget APD fee of £13 per person is set to rise to £14.64.

The APD fee is split into three bands — flights up to 2,000 miles, flights between 2,001 and 5,500 miles (8,851km), and flights that are more than 5,500 miles.

For New Zealand and Australia, the pre-budget APD of £91 per person is set to rise to £102.47

British Airways, Virgin Atlantic, Ryanair and easyJet had all urged UK Chancellor Jeremy Hunt not to increase APD in line with RPI.