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Air Passenger Duty Increase

As announced in the Chancellor's pre-Budget report, Air Passenger duty is set to double from February 1st, and chaos is expected at airports across the country as some airlines look to charge extra tax on tickets booked before the deadline. With passengers set to pay increases between £5 and £40, Airlines are not agreed over what action to take.

Many airlines increased their fares immediately after the Chancellor's announcement and some airlines are willing to cover the extra charges themselves. British Airways went as far as setting aside £11 million to cover the extra tax for those customers that bought their tickets before the deadline. Others, however, insist that customers may not be able to fly unless they pay the extra cost in advance, claiming they will make a loss if passengers don't pay the increased duty.

The increase was introduced as the government do not feel the aviation industry is meeting its environmental costs. The rise should see income from duty increase to £2 billion to pay for extra resources in public transport and the environment sector.

The new Air Passenger Duty from February 1st will be:

  • Economy class flights in Europe, £10
  • Business and first class flights in Europe, £20
  • Economy class long-haul flights, £40
  • Business and first class long-haul flights, £80

Passengers that booked their tickets before December 6th 2006 are advised to check with their airline whether more payment was due before travelling. For all travel news and great deals on airport parking and airport hotels, remember to check back with Holiday Extras.