Chancellor announces rise in flight taxes

Air passengers will be hit by an increase in flight taxes.

Chancellor Rachel Reeves said air passenger duty (APD) will rise from the 2026/27 financial year, adding up to £2 to the cost of an economy ticket for a short-haul flight.

Private jet users will be hit by a 50% hike in APD, she added.

For passengers travelling in economy, they are £7 for a domestic flight, £13 for a short-haul flight, and £88-£92 for a long-haul flight.

The increases from 2026/27 will add £1 to domestic flights, £2 to short-haul flights and £12 to long-haul flights.

Those in premium cabins are charged £14 for a domestic flight, £26 for a short-haul flight, and £194-£202 for a long-haul flight.

Private jet passengers currently face an APD rate of £78 for domestic or short-haul flights, and £581-£607 for long-haul flights.

Ms Reeves mocked Tory leader Rishi Sunak as she joked his “ears have pricked up” when she mentioned APD.

The Chancellor told the Commons: “Air passenger duty has not kept up with inflation in recent years so we are introducing an adjustment, meaning an increase of no more than £2 for an economy class short-haul flight.

“But I am taking a different approach when it comes to private jets, increasing the rate of air passenger duty by a further 50%.

“That is equivalent to £450 per passenger for a private jet to, say, California.”

A Treasury document stated that the increases will “help correct for below-inflation uprating in recent years”.

Karen Dee, chief executive of trade body AirportsUK, described the announcement as “disappointing” as airports are “investing in new security technologies, sustainable flight and airspace modernisation, as well as facing increasing burdens in other areas”.

She added: “If the Government is serious about realising its aim for the UK to become the fastest growing economy in the G7, then it must recognise and champion the role that airports play in growth and international connectivity, and minimise the cost and regulatory burdens imposed.”

Tim Alderslade, chief executive of Airlines UK, which represents UK-registered carriers, said APD “already makes the UK less competitive” and further increases will “impact growth, directly hitting the pockets of ordinary travellers and making it harder for UK airlines to put on new routes”.