Planned APD increase risks aviation recovery

Analysis released today by The Future of Aviation Group shows the devastating impact that proposed increases to Air Passenger Duty (APD) will have on businesses ability to restart global trade and on the aviation sector’s recovery from the impacts of COVID-19.  

The new analysis suggests that the Government will be taking around 40% of the cost of a one-way ticket for flying from UK airports.

The analysis shows that flights leaving during the first week of April, that on average 37% of the cost of a one-way ticket to the 47 nations listed by the Office for National Statistic (ONS) as destinations flown to for business purposes will be air passenger duty, with flights to New York being hit by a 42% tax rate.  

The Government plan to increase air passenger duty for long haul flights from £78 to £82, which is the latest in a long line of increases since its introduction in 1994 when the tax was just £10.  This is the highest form of aviation taxes in the developed world and comes as other European nations such as the Republic of Ireland and the Netherlands continue to levy no equivalent tax at all. 

Commenting, Henry Smith MP, Chair of the Future of Aviation Group 

“That we are continuing to levy the highest aviation taxes in the world with our aviation industry is on its knees is simply unacceptable and risks holding back the sectors recovery before it has even started. We should be cutting aviation taxes to help get Britain flying again not raising them. 

“Our aviation industry is a vital part of our national economic recovery from COVID and our aspirations for a truly global Britain. It is high time that the Government unveil a full package of support that includes a 12-month suspension of APD and the introduction of testing for all international visitors. 

“The consequences of failing to support and protect our aviation industry are unthinkable and I urge the Chancellor to begin this overdue support by suspending this tax on our recovery.”