And it appears that I was right. Today it Labour is reportedly planning a tax raid on holidays through a potential increase in Air Passenger Duty (APD) on October 30 which will mean the price of holidays to destinations like Mallorca will become even more expensive. An aviation industry source stated, “We’re expecting an above-RPI increase given everything we’re hearing about tax rises in the Budget.”
The APD regime was overhauled in April last year, introducing a three-tier scheme based on flight distance and carbon emissions. Current charges range from £13 for short-haul economy flights to £202 for long-haul business class. Any increase in APD is likely to be passed on to customers through higher air fares. This could significantly impact family holidays and travel plans.
Everyone over 16 has to pay APD. If you’re over 16 and have flown on a plane, you will have paid air passenger duty (APD). It is the tax that you have to pay when you travel from most airports in this country and it is actually unique to the UK.
APD rates from 1 April 2024
Domestic £7 £14
Band A (0 to 2,000 miles) £13 £26
Band B (2,001 miles to 5,500 miles) £88 £194
Band C (over 5,500 miles) £92 £202