Chancellor Rachel Reeves has confirmed a double hike to Air Passenger Duty (APD), setting the stage for significantly more expensive flights for UK holidaymakers and businesses by the summer of 2027.
A Double Blow for Travellers
In last week's budget, the Chancellor announced that Air Passenger Duty will rise in line with inflation from April 2027. This represents a second increase, as APD rates are already scheduled to jump above the rate of inflation on 1 April 2026. The tax is levied on flights departing from UK airports and is typically folded into the ticket price paid by passengers.
The combined effect of these two rises will be stark. According to analysis cited by The Telegraph, a family of four flying in premium economy to Orlando, Florida, could pay over £1,000 just in APD to leave the UK by 2027. For individual travellers, the new rates mean adults flying in a class above economy to Europe will pay £33.04, while those on long-haul flights in premium seats could be charged up to £261.25.
Industry Backlash and Economic Warnings
The move is part of the government's push to bolster public finances and encourage more sustainable travel. From April next year, APD rates will increase across the board, with a punitive 50 per cent rise targeted specifically at private jet flights.
However, the aviation industry has reacted with fierce criticism. Willie Walsh, the former chief executive of British Airways, has previously branded APD a 'cash grab masquerading as a green tax'. Last month, he urged the Chancellor to abandon the plans and spare travellers from being 'fleeced'.
Ryanair's CEO, Michael O'Leary, accused the government of having no grasp on economic growth, warning that the policy will lead airlines to move aircraft out of the UK. He pointed to a European trend of governments rolling back environmental taxes and reaping economic benefits.
Airports and the UK's Competitiveness Hit
The financial pain will extend beyond passengers to the airports themselves. Tax advisors Ryan LLC project that Heathrow Airport's rate bill will surge from £117 million to £240 million within three years, following a 353% increase in its rateable value. London Gatwick and the Manchester Airports Group, which owns Stansted and East Midlands airports, will also see their bills more than double.
Karen Dee, chief executive of AirportsUK, called the hikes 'a short-sighted move' that will result in higher prices and fewer choices for families and business flyers. The increases come as the UK cements its status as one of Europe's most expensive countries for air travel, a fact highlighted by the International Air Transport Association (IATA). High operating costs and some of the continent's highest ticket taxes are contributing to a reported decline in international tourists visiting the UK.
