Karen Dee, the Chief Executive of AirportsUK has expressed her disappointment that Chancellor Rachel Reeves has introduced a hike in Air Passenger Duty (APD).
“It was disappointing that the chancellor increased APD, especially at a time when airports are investing in new security technologies, sustainable flight and airspace modernisation, as well as facing increasing burdens in other areas.”
The hike was announced as part of the government’s 2024 Budget, which was revealed on Wednesday 30 October. The increased APD will impact both commercial passengers and private jet customers with the new rules taking effect in April 2026. Passengers in economy will pay an extra £1 for domestic flights, £2 more to fly to short-haul destinations, £12 for long-haul destinations and relatively more for those flying in premium economy and business class cabins.
The higher rate, which currently applies to larger private jets will rise by a further 50 per cent in 2026-2027. Passengers under the age of 16 will be exempt from the charge, however the government is also consulting on the extending the scope of the APD higher rate to capture all passengers travelling in private jets already within the APD regime.
The British Business and General Aviation Association (BBGA) highlighted that the 50% increase in APD affecting charter rates of ‘large’ charter aircraft (above 20 tonnes), from 2026, adds over £1,000 per passenger on charter rates for business jet passengers flying over 2,000 miles – similar to measures introduce in France. However, the association also highlighted that the “real surprise” is a supplemental consultation paper released on the same day, proposing that ‘smaller’ business aircraft at 5. 7 tonnes MTOW (King Air upwards size) could be slapped with a high rate of APD. “Such a proposal would be a major deterrent to business, coupled with all other post Brexit regulations and costs our industry is facing, including a 90 per cent hike in Border Force charges,” a statement from the association read.
BBGA also underlined that the Labour Government’s mission to Kickstart economic growth – to secure the highest sustained growth in the G7 – depends on the enablement of business aviation. “Access to slots, access to airfields, fair taxation, investment in UK aviation manufacturing and maintenance are vital and our leads on innovation – from electric aviation, early adoption and promotion of sustainable aviation fuel and hydrogen as well as operational expertise,” the statement continued.
AirportsUK’s Dee also emphasised that if the government is serious about achieving its aim for the UK to become the fastest-growing economy in the G7, “then it must recognise and champion the role that airports play in growth and international connectivity and minimise the cost and regulatory burdens imposed.”
Chancellor Reeves’ plan to raise the tax is expected to have detrimental effects on the UK aviation industry, impacting jobs, tourism and the broader economy. Similar tax hikes in other countries have had negative impact with Ryanair reducing its capacity by in Germany by 12 per cent for summer 2025 in response to raised duty.
Image source: Karen Dee, AirportsUK
