A hike in flight tax could add close to £30 to an average family's holiday.
Brits flying abroad on family holidays this summer will be impacted by a rise in Air Passenger Duty (APD) which is in line with inflation and was announced by Chancellor Jeremy Hunt in the budget today.
The tax, which is charged based on how far people travel, will rise based on the predicted rate of inflation for the coming year.
The impact will be felt most by those who can afford to fly long-haul to far away destinations.
For an economy seat to Thailand or Australia the APD paid will increase from £84 to £91.
For a family of four, that is close to £30 in extra spending.
Trips to the likes of Egypt, Cape Verde and the Caribbean will rise by £4 per person, while short-haul trips are not impacted at all.,
Domestic flights will see an even smaller rise of 50p, once the government's plans from April 1 comes into force.
The levy is charged on flights taking off from a UK airport, meaning it is paid on outbound journeys but not on the return left.
How different flights will be impacted
- Domestic (within the UK): Up 50p, from £6.50 to £7
- Short haul (0 to 2,000 miles): No change from £13
- Medium haul (2,001 to 5,500 miles): Up £4 from £87 to £91
- Long haul (over 5,500 miles): Up £7 from £84 to £91
Airline bosses have, somewhat predictable, pushed back against the rise.
In a joint letter to Mr Hunt, they wrote: "When our competitors are providing such generous support to their aviation sectors, it makes no sense strategically to be increasing costs for UK airlines.
"We consequently urge the Government to help to reduce the burden both on travellers and the sector and forestall any RPI rises that risk an outsized impact on our aviation sector, the competitiveness of UK airlines and the wider economy."
They are calling for lower taxes despite not paying any VAT on flights or tax on plane fuel, and despite a 50% cut in domestic APD about to come into force.
In correspondence with the Treasury seen by The Mirror, easyJet admitted it was expecting a huge boost in domestic passenger numbers following last year's domestic flight tax cut.
The company told the Treasury that its "domestic volume" would rise by 31% due to the cut, while BA’s owner International Airlines Group suggested "new routes, increased frequency and larger aircraft" would follow.
While airline bosses regularly claim that the APD burden on UK flyers is among the highest in the world, it does not seem to be deterring Brits from flying.
By passengers numbers Britain is the fourth biggest country for aviation in the world, with 165,388,610 people flying in 2022.
Critics of APD, which includes some environmental campaigners as well as airlines, argue that it does not incentivise investment in greener forms of flying or aviation firms to fill their planes as much as possible - which reduces the per-passenger impact.
Alternatives include a frequent flyer tax which would increase the more a person flies, or a carbon tax pegged to the amount of fuel burned.
