Reeves increases Air Passenger Duty in Budget announcement
October 30, 2024
Air passengers are set to face an increase in flight taxes, as Chancellor Rachel Reeves announced a rise in air passenger duty (APD) during today’s Budget. For economy-class passengers on short-haul flights, the cost will increase by up to £2.
In a more significant change, users of private jets will see a 50% hike in APD. “I am taking a different approach when it comes to private jets, increasing the rate of air passenger duty by a further 50%,” Reeves stated.
APD rates are determined by flight length and cabin class. For economy travellers, the current rates are £7 for domestic flights, £13 for short-haul flights, and between £88 and £92 for long-haul flights. Premium cabin passengers face higher charges: £14 for domestic, £26 for short-haul, and between £194 and £202 for long-haul flights.
For private jet users, the existing APD is £78 for domestic or short-haul flights and between £581 and £607 for long-haul journeys.
Reeves humorously noted that Tory leader Rishi Sunak might have perked up at the mention of APD. She explained in 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.”