Cheap flights are under threat after the hike in air passenger duty (APD) in the autumn budget saw airlines threatening to axe some routes.

While the budget added £2 more for the cheapest seats and 50 per cent more to fly on private jets, holiday companies have said they will have to cut some flights in response.

Ryanair boss Michael O'Leary says: "This short-sighted tax grab will make air travel much more expensive for ordinary UK families going on holidays abroad and will make the UK a less competitive destination compared to Ireland, Sweden, Hungary and Italy where these Govt’s are abolishing travel taxes to stimulate traffic, tourism, and jobs growth in their economies. 


"Ryanair will now review its UK schedules and expects to cut capacity to/from UK airports by up to 10% in 2025. This will reduce air travel to/from the UK by up to 5 million passengers.”

APD rates, the tax that passengers aged 16 and over must pay when flying from most UK airports, increase each year with the forecast Retail Price Index  and are adjusted in line with inflation.

The chancellor said during the autumn budget that APD had “not kept up with inflation in recent years”.

Although the next rise will be introduced from 1 April 2025, raised rates announced in last week's budget – £15 for short-haul international flights – will come into effect from 1 April 2026, there's still time to grab a bargain before the changes come in.

What is APD and how is it decided?

Normal Air Passenger Duty rates are set by cabin class and the destination of the flight. Turn right and you pay more. Economy class seats (less than 40 inches from the front of one seat to the front of the other) pay a reduced rate. For premium economy and above, a higher rate is payable.
Private jets - carrying fewer than 19 passengers – pay the highest APD rate of all.

What are the fees by destination?

Taxes are organised into four destination bands - starting with domestic travel in England, Scotland, Wales and Northern Ireland only.

International bands are then charged by the distance flown from London to the destination’s capital city – Band A (0 to 2,000 miles) includes all destinations in the EU and EEA, then Band B (2,001 to 5,500 miles) takes in longer haul destinations such as the USA, Caribbean and the Maldives and Band C (over 5,500 miles) includes anywhere else - particularly Australia and New Zealand.

What is the current rate of air passenger duty?

These are the current rates for APD until 31 March 2025:

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

In the first rise, from 1 April 2025 APD rates will be:

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

From 1 April 2026, APD rates will be:

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