UK holidaymakers planning trips to popular European destinations such as Spain, France, Turkey, and Greece will soon be met with higher airfares.
This comes after an increase in Air Passenger Duty (APD) announced in the recent autumn Budget.
Chancellor Rachel Reeves revealed that APD will rise from the 2026/27 financial year, adding up to £15 for short-haul flights in economy, marking an additional cost burden for millions of travelers.
The APD is a tax levied on passengers departing from UK airports and varies according to flight distance and travel class.
Originally introduced in 1994 to help offset aviation’s environmental impact, APD is incorporated into ticket prices by airlines, which pass the fees to the government.
As a result, any increase in APD translates directly to pricier airfares for British tourists.
Under the new structure, which takes effect from April 1, 2026, economy travellers flying domestically will see a £1 increase to £8, while short-haul travellers will face a £2 hike, making the total APD £15.
Long-haul economy passengers will experience a rise of up to £12, with fees ranging between £100 and £104.
Notably, private jet travellers will see APD charges soar by 50%, with transatlantic private flights to destinations like California costing as much as £450 per passenger.
In her statement to Parliament, Ms Reeves said: “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.”
She added that private jet passengers would shoulder more of the burden, as a 50% increase aligns with the government’s commitment to environmental responsibility.
Travel industry leaders are raising concerns that the new tax hike could hinder the UK’s travel sector, potentially deterring tourists and impacting flight route expansion.
Tim Alderslade, CEO of Airlines UK, warned that the increased APD “directly hits the pockets of ordinary travellers and makes it harder for UK airlines to put on new routes.”
Karen Dee, CEO of AirportsUK, echoed this sentiment, noting that high taxes could make the UK less competitive and undermine its growth goals.
The Treasury argues that the hike aims to correct recent years of below-inflation adjustments to APD.
