HOSTED BY: 1 AIR TRAVEL
The United Kingdom has what’s known as the Air Passenger Duty (APD), which is the highest passenger tax on air travel anywhere in the world. We tend to see annual adjustments to this, to reflect inflation. Not only is the UK APD going up as of April 1, 2024, but we’re going to see an additional hike as of 2025, which will exclusively hit premium cabin passengers.
New UK APD as of April 1, 2024
As of April 1, 2024, the United Kingdom will be increasing the Air Passenger Duty for many types of tickets:
The domestic economy APD will increase by £0.50, from £6.50 to £7 (~$9)The domestic premium APD will increase by £1, from £13 to £14 (~$18)The long haul economy APD will increase by £4, from £84 to £88 (~$112)The long haul premium APD will increase by £9, from £185 to £194 (~$246)The ultra long haul economy APD will increase by £1, from £91 to £92 (~$117)The ultra long haul premium APD will increase by £2, from £200 to £202 (~$257)A few things to note:
The premium APD applies for tickets in premium economy, business class, and first classFor these purposes, long haul is defined as a journey of 2,001-5,500 miles, while ultra long haul is defined as a journey of 5,501+ milesThe short haul APD (for international flights of up to 2,000 miles) won’t be adjusted in 2024; that continues to be £13 in economy and £26 in business classThis is only one tax that applies on flights out of the UK, as there are plenty of other airport and customs taxes
The UK APD will be increasing as of April 2024
UK APD increasing further in 2025
Not only is the UK Air Passenger Duty increasing in 2024, but we’ve already learned the details of a new APD price hike as of April 1, 2025. This will apply specifically to premium cabin passengers:
The domestic premium APD will increase by £2, from £14 to £16 (~$20)The short haul premium APD will increase by £2, from £26 to £28 (~$36)The long haul premium APD will increase by £22, from £194 to £216 (~$274)The ultra long haul premium APD will increase by £22, from £202 to £224 (~$284)As you can see, the increases to the APD for long haul and ultra long haul itineraries are pretty significant. This is described as a one-off adjustment for non-economy passengers, to account for high inflation in recent years, and to maintain the value of the APD in real terms.
Premium cabins will be hit hardest in 2025
Which passengers have to pay the UK APD?
The UK Air Passenger Duty applies to any ticket originating in the UK — this means that if you’re simply transiting the UK on one ticket then you shouldn’t be on the hook for this.
Rather it’s charged based on having a journey originating in the UK (even if it’s the return portion of a ticket), regardless of where you’re connecting.
As you might expect, the UK APD is controversial:
It’s a tax against those in the UK, rather than those who simply connect in the UK, as the latter group doesn’t have to pay thisHigh taxes negatively impact demand for air travel, since it makes flying more expensive; the airline industry will be struggling for a while, so to see this tax get even more expensive will be disappointing to both airlines and many consumers
The UK APD doesn’t apply to connecting passengers
Bottom line
The UK Air Passenger Duty is about to get more expensive. As of April 1, 2024, we’re seeing a mild annual adjustment to the APD. Then as of April 1, 2025, we’re seeing a material increase to the APD for longer flights in premium cabins, which is described as a one-off adjustment to account for inflation.
What do you make of the UK’s upcoming APD hikes?
Title: UK Air Passenger Duty Increasing, Premium Cabins Hit Hardest
Sourced From: onemileatatime.com/news/uk-air-passenger-duty-increasing/
Published Date: Thu, 07 Mar 2024 11:25:56 +0000
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