Flying is set to become more expensive for Brits next year as Chancellor Jeremy Hunt announced in the budget that Air Passenger Duty (APD) would rise in line with inflation. The increase will hit passengers on domestic and long-haul flights the most, although short haul international rates will remain frozen.
The tax is based on how far people are flying, with different rates for domestic, short and long haul destinations. APD is charged on flights departing a UK airport, but it is not charged on inbound flights.
The APD rate for domestic flights will increase by 50p to £7 for 2024-25, while long haul and ultra-long haul flights will rise by £1, as set out in the budget.
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The Budget report stated: “APD rates will increase in line with RPI for 2024- 25 rounded to the nearest pound, meaning that short haul international rates remain frozen, benefitting more than 70% of passengers.
“Following a 50% cut in APD for domestic flights in 2023-24, the rate for domestic flights will increase by 50p to £7. The long haul and ultra-long haul economy rates will increase by £1.”
The APD rates for economy flights from April 1 2023 are:
- Domestic flights: £6.50
- Band A destination (less than 2,000 miles away): £13
- Band B destination (between 2,001 miles and 5,500 miles away): £87
- Band C destination (more than 5,500 miles away): £91
From 2024-25 these rates will increase in line with inflation. Previously the Government used two destination bands for short haul and long haul, but it has now introduced a third category for ultra-long haul destinations.
The APD rates vary depending on the class you travel in and the number of passengers carried by the aircraft.
According to the Office for Budget Responsibility, APD will raise an estimated £3.5billion for the year 2022-23, with the majority of this generated from those travelling in the lowest class.
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