The rise in Air Passenger Duty (APD) was announced in the budget last week, however the news was buried among other headlines about tax rises. If you’re planning on jetting off next year here’s what you need to know about APD and how much the change could cost you.
Key things you need to know about the hike in Air Passenger Duty (APD)
- Tax – APD is a UK government tax which is paid for each passenger on a chargeable flight, and is based on factors including flight distance and travel class. Typically, it’s included in the ticket price, so a rise in the tax would mean higher air fares.
- Inflation – Last week, Chancellor Rachel Reeves announced two rises in Air Passenger Duty (APD). The first, which is above inflation, will come into force on April 1, 2026, then the second which will be linked to inflation, will be applied to flights from April 1, 2027.
- Exemptions – Under-16s travelling in economy and under-2s in any cabin are exempt from the tax. Flights to and from the Scottish Highlands are also exempt, and passengers who fly via Belfast or Dublin for transatlantic flights will also see a lower APD bill.
- Savings – Passengers may be able to reduce the amount of APD they pay by choosing a long haul flight that connects in Belfast, Dublin, or via a European airport.
- Bands – The amount of APD paid depends on which band the destination is in. Band A covers distances up to 2,000 miles including EU and EEA countries, Band B is between 2,001 and 5,500 miles, while band C covers destinations over 5,500.
- Class – APD costs are also linked to the airline class you sit in. The reduced rate applies to seats with a pitch under 1.016 metres (40 inches), covering most economy class seats. However, many premium economy seat pitches are between 36–42 inches, potentially meaning travellers will need to pay the more expensive standard rate when choosing these roomier seats.
- Rises – Those on the ‘reduced’ rate will see an increase from £7 to £8 in 2026, while Band A will rise from £13 to £15, Band B from £90 to £102, and Band C from £94 to £105. In 2027, the rates will be £8.26 for domestic passengers, £15.49 for Band A, £105.33 for Band B, and £109.46 for Band C.
- Critics – Criticism of the scheme has focused on the increased costs to families going on holiday, and those opposed to APD have also pointed out it doesn’t deter people from taking flights.
- Support – Supporters of APD rises say the aviation industry is “criminally undertaxed”, as it currently pays no tax on jet fuel. They also argue that rises will mostly hit people who are frequent fliers or take long-haul flights.
Read the full story here: The £30 charge for British familes to fly to Spain – and how you can avoid it