Air Passenger Duty (APD) to increase. What does this mean for travellers?

Air Passenger Duty is the tax travellers pay when buying a plane ticket to fly out of the UK. Originally introduced in 1994, it is now the highest airline tax in the world. An increase is due in April 2025 and thanks to Rachel Reeves, the chancellor of the exchequer, there will be another rise in April 2026 adding up to £2 to the cost of an economy short-haul flight. Those flying by private jet will see their APD rise by 50 per cent.

How Passenger Duty is applied

APD is not a one-size-fits-all all. The rate depends on where you sit on the plane and your destination. Those travelling on any premium class will pay a higher rate while a reduced rate applies to economy class where seat pitch is less than 40 inches. There are four bands:

The Domestic Band: Flights to anywhere in England, Scotland, Wales and Northern Ireland from anywhere in the UK.

Band A:  Flights that cover up to 2,00 miles to countries in the European Economic Area (EEA) and other short to mid-haul destinations. This includes Albania and Turkey.

Band B: Flights between 2,001 and 5,500 miles such as Egypt and the Maldives.

Band C: Flights that cover distances over 5,500 miles such as Australia and New Zealand.

How much is APD right now?

• Domestic: reduced rate £7, standard rate £14, higher rate £78
• Band A: reduced rate £13, standard rate £26, higher rate £78
• Band B: reduced rate £88, standard rate £194, higher rate £581
• Band C: reduced rate £92, standard rate £202, higher rate £607

What will APD rise to on Tuesday, April 1 2025?

• Domestic: reduced rate £7, standard rate £14, higher rate £84
• Band A: reduced rate £13, standard rate £28, higher rate £84
• Band B: reduced rate £90, standard rate £216, higher rate £647
• Band C: reduced rate £94, standard rate £224, higher rate £673

What will APD rise to from Wednesday, April 1, 2026?

• Domestic: reduced rate £8, standard rate £16, higher rate £142
• Band A: reduced rate £15, standard rate £32, higher rate £142
• Band B: reduced rate £102, standard rate £244, higher rate £1,097
• Band C: reduced rate £106, standard rate £253, higher rate £1,141

Incidentally, APD is collected by the airlines when you pay for the ticket and then hand it over to HMRC after you fly. If you miss your flight you can get back the APD by applying for a refund through the airline.