(UNITED KINGDOM) The cost of UK air travel will rise again from 1 April 2025, when Air Passenger Duty (APD) increases in line with inflation take effect. A further round of APD changes from April 2026 will push long‑haul economy tickets higher and sharply raise taxes on private jets. Announced under the Labour government, the new rates and expected follow‑ups add pressure to fares already lifted by tight airport capacity and broader price growth, setting the stage for a more expensive year for families, workers, and students booking flights.
What changes from April 2025 and April 2026
- From 1 April 2025, the standard long‑haul APD rate rises to £224 per passenger.
- Higher APD rates will reach up to £673, depending on distance and class of travel.
- Domestic tickets will carry £14 duty under the updated schedule.
- Band rates:
- Band A (0–2,000 miles): £28
- Band B (2,001–5,500 miles): £216
- Band C (over 5,500 miles): £224
These 2025 changes are tied to the Retail Price Index and follow a long‑running policy of lifting APD annually in line with inflation.
- The government’s next step, set for April 2026, will:
- Add up to £12 to long‑haul economy APD.
- Increase APD on private jets by 50%.
Officials say these adjustments maintain the real value of the tax and target higher‑emitting travel.
Important: The private jet APD rise from April 2026 is intended to reflect higher emissions per passenger in that segment.
Industry reaction and concerns
Airlines, airports and industry groups highlight several risks:
- Higher APD, airport capacity limits, and strong seasonal demand are combining to push fares up.
- There is a danger of fewer available seats — especially on thinner routes — if demand weakens.
- Carriers warn of reduced flight frequencies, which could harm regional connectivity and sector jobs.
- Airports say steeper APD can deter price‑sensitive travellers and weaken route economics amid fuel price volatility and aircraft supply bottlenecks.
According to industry analysis, the timing—just as carriers rebuild networks and aircraft deliveries lag—risks pushing marginal routes below break‑even. If schedules contract, travellers may see:
- Fewer early‑morning or late‑night options
- Reduced weekend frequencies
- Loss of less popular seasonal links
All of which narrows choice and can push prices higher on remaining flights.
Impact on holiday budgets and passengers
- The International Air Transport Association has warned proposed tax increases could add around £1,000 to the cost of a family trip to Cancun (illustrative).
- Exact increases depend on itinerary, distance band, cabin class and carrier pricing.
- For long‑haul leisure routes, families booking peak summer departures face the new duty levels amid reports of fare surges — for example, fares rose 30.2% between June and July 2025 on some long‑haul leisure routes tied to school holiday demand.
For many journeys there is still no practical alternative to flying. Even with higher APD, many UK short‑haul flights remain cheaper than comparable cross‑border train journeys in Europe, keeping planes attractive for weekend breaks and family visits despite environmental concerns.
Who is most affected
- Business travellers on long‑haul missions (Band B and C) will face higher annual travel costs if they cannot switch to rail.
- International students and skilled workers planning trips home may delay or reduce visits due to higher fares; universities note this in discussions about overseas students’ cost of living.
- Seasonal staff and suppliers could be vulnerable if passenger volumes fall.
Behavioural and commercial responses
- Airlines may adjust how they split fares between basic economy and higher fare buckets to manage tax exposure, though APD bands apply regardless of an airline’s pricing strategy.
- Peak summer pricing remains highly sensitive to school holiday demand; off‑peak travellers may see smaller changes, particularly on highly competitive routes.
- Travel agents expect a spike in queries as the 2025 rates take effect and carriers update price displays and fare rules.
Wider economic and sector effects
- Unions warn that escalating costs could put some jobs at risk, especially where seasonal staffing depends on steady volumes.
- Any reduction in flying affects caterers, ground handlers, and regional suppliers — illustrating how APD, though charged to passengers, influences a broad slice of the aviation economy.
- Both government and industry agree that limited airport slots, strong leisure demand, and supply‑chain constraints around new aircraft are contributing to higher prices.
Official guidance and where to find details
Government guidance for businesses and travellers sets out the updated APD bands and rates, with detailed rules for distance, class, and exemptions. HM Revenue and Customs maintains the official schedule and updates it as new rates take effect.
- For current and upcoming figures, consult the HMRC page: https://www.gov.uk/guidance/rates-and-allowances-for-air-passenger-duty
- That page explains how bands are defined and when airlines must account for the duty.
Airlines are responsible for collecting APD and remitting it to HMRC, and they typically pass the cost through to passengers in the fare.
Practical tips for travellers and agents
- Compare total prices across booking sites and airline channels — APD changes can alter how fees display during checkout.
- For trips spanning the 1 April 2025 rate change, rules on travel date and ticketing can affect the final duty applied.
- Families planning long‑haul holidays in the first half of 2026 should factor in the potential additional up to £12 on economy APD, plus any carrier fare increases.
Contact for queries
Questions about APD changes can be directed to HMRC. The department lists a dedicated contact for the duty:
- Ann Little
- Telephone: 03000 586 096
- Email: [email protected]
Passengers, airlines, and agents seeking clarity on band definitions, exemptions, or reporting obligations can use that channel alongside the official online guidance.
Key takeaway: The government frames APD as a stable, predictable tool to raise revenue and nudge behaviour, while industry sees it as an additional drag on growth. Over the next 18 months the market will be tested on whether it can absorb these duty increases without reducing choice for travellers outside the busiest routes.
This Article in a Nutshell
The UK will increase Air Passenger Duty from 1 April 2025, raising the standard long‑haul rate to £224 and setting domestic duty at £14. APD bands for distance set Band A at £28, Band B £216 and Band C £224; rates follow the Retail Price Index. From April 2026 the government plans up to £12 more on long‑haul economy and a 50% rise in private jet APD. Industry warns higher taxes amid limited airport capacity could reduce frequencies, raise fares and affect families, students and regional connectivity. Travellers should consult HMRC and compare total fares when booking.
