The UK government has opted to implement a phased increase in the Air Passenger Duty (APD) for travellers in premium travel classes. Finance Secretary Jeremy Hunt has announced that the top rate will elevate to £224 next year, equivalent to €262. For Economy passengers, fare adjustments are minimal.
Currently, First Class, Business Class, and some Premium Economy Classes incur a £200 tax for long-haul flights exceeding 5,500 miles from London. This amount will climb to £202 on April 1 this year, with a more substantial increase scheduled for April 1, 2025, reaching £224. This represents a total increase of 12 percent.
On medium-haul and somewhat shorter long-haul flights (2,000 to 5,500 miles), the fare for premium-class travellers will rise from £191 to £216 in two stages. European flights, covering distances under 2,000 miles, such as from London to Schiphol, will experience a modest increase from £26 to £28.
The fare remains consistent regardless of whether travellers opt for non-stop flights from the UK to a destination or involve a transfer through a foreign airport. Transfer passengers flying through the UK are exempt from the tax.
Within Premium Economy, only Premium Economy classes boasting a minimum legroom of 40 inches are subject to the increased tax. Despite many airlines offering 38-inch legroom in this class, travel in Premium Economy still falls below the lower tax rate for Economy Class passengers.
Unlike the tax imposed on premium passengers, the increase for Economy passengers is marginal, amounting to a maximum of 2 percent. Flights to European destinations maintain the same fare at £13. For destinations spanning 2,000 to 5,500 miles, fares will rise from £88 to £90, and beyond that, from £92 to £94, effective April 1, 2025.
The UK flight tax exhibits a higher degree of differentiation compared to the Dutch system, which levies a fixed €29 tax regardless of distance or travel class. Consequently, travellers departing from the Netherlands pay significantly more tax on European flights in Economy Class, but less on long-haul flights and in premium travel classes. For private jet passengers in the UK, a separate tax rate applies, slated to increase to £673 per passenger in 2025 for the longest flights.
