The United Kingdom has the so-called Air Passenger Duty (APD), which is the world’s highest passenger tax on air travel. It looks like it will continue to increase in 2022 despite the collapse of the travel industry.
The UK APD will increase from April 2022
The UK will increase long-haul passenger tax in all staterooms from April 2022::
- The APD for the long haul economy will increase by £ 2 from £ 82 to £ 84 (~ $ 117).
- Long haul Premium Economy, Business Class and First Class APD will increase by £ 5 from £ 180 to £ 185 (~ $ 259).
- The APD for long-haul private jets will increase by £ 13 from £ 541 to £ 554 (~ $ 775).
A couple of things to keep in mind:
- For these purposes, long haul is defined as a journey of more than 2,000 miles
- The short-haul APD will not be adjusted in 2022. That is still £ 13 in Economy and £ 26 in Business Class
- This APD increase was announced as part of the UK’s recent budget announcement as the APD tends to increase annually. For example, in April 2021, the APD for long-haul business APD will increase by £ 2 and the APD for Premium Economy, Business Class and First Class long-haul APD will increase by £ 4
- This is just a tax that applies to flights out of the UK as there are many other airport and customs taxes, including a new coronavirus tax for Heathrow Airport
Heathrow Airport recently introduced a new coronavirus tax
Which passengers have to pay the UK APD?
The UK Air Passenger Duty applies to all flights originating in the UK. This means you shouldn’t be on the hook flying around the UK on just one ticket.
The fee is based on a trip originating in the UK (even if it is the return flight of a ticket) regardless of where you connect.
Suffice it to say that the UK APD is controversial:
- It is a tax on those in the UK and not those who simply join in the UK as the latter group does not have to pay it
- High taxes have a negative impact on the demand for air travel as they make flying more expensive. The aviation industry will have problems for a while. Therefore, it will be disappointing for both airlines and many consumers if this tax becomes even more expensive
The increased APD in the UK is bad for airlines
UK passenger tax on long haul flights is set to increase by £ 2 to £ 13 in 2022 despite the dire situation in the aviation industry. As would be expected, the UK’s revenue from the APD this year is given the lack of demand for travel. However, this does not prevent the government from increasing this tax even further.
What do you think of the constant APD walks in the UK?