What the expected rise in Air Passenger Duty means for UK travellers in 2025

Chancellor Rachel Reeves is expected to raise Air Passenger Duty (APD) in her first Budget on 30 October 2024, according to reports.

Industry groups like ABTA anticipate the increase to be “slightly above inflation,” following a pattern of steady APD hikes in recent years that have affected air travel in the UK.

Presenting at the Leaders in Travel Summit, Director of Public Affairs Luke Petherbridge said: “I would expect we might see a slightly above inflation increase in APD this year.”

In this article, we explain what the Air Passenger Duty is and what an increase in APD will mean for UK passengers when they set off to one of London Southend Airport’s destinations in 2025.

What is Air Passenger Duty (APD)?

Air Passenger Duty (APD) is a tax you pay for each passenger flying from UK airports to any destination, whether in the UK or abroad. The tax varies based on how far you’re flying and what class you’re travelling in – longer flights and first or business class tickets usually cost more.

The upcoming increase is likely to impact long-haul flights and premium classes the most, while APD rates for domestic and short-haul economy flights are expected to stay the same.

Recent increases in April 2024 already affected longer flights and premium tickets, and further hikes could add to the costs for both airlines and passengers.

What an APD increase means for passengers

Currently, APD for domestic flights is £7. For short-haul flights, it’s £13.

If the increase goes ahead, longer flights and premium seats will see a bigger jump in taxes – similar to what happened in April 2024, where business and first-class tickets faced higher taxes.

These tax hikes can make flying more expensive for travellers, which is why it’s important to have fair tax rules that support both the airline industry and passengers while still providing affordable travel options.

While the increases in APD can make air travel less affordable, at London Southend Airport we are proud to continue to support our customers with budget-friendly flights.

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