Despite the current jet fuel crisis caused by the conflict in the Middle East with airlines faced with the prospect of altering flight plans and airfares, since last month, Britons flying on holiday to destinations like Mallorca and the rest of Spain have been paying more due to the UK government’s decision to increase Air Passenger Duty.
Under the UK Under budget plans, APD rose in April in line with inflation and will rise again next year. As the duty forms part of the cost of each airline ticket, carriers say the adjustment is likely to result in higher fares on some routes. The higher rate will also cover private jets for which Mallorca is one of Spain’s busiest airports over 5.7 tonnes. The levy has increased by a maximum of 15 per cent per person with further plans to raise APD in April 2027.
Band A covers 0 to 2,000 miles, essentially all of Europe and the majority of North Africa. It includes holiday hotspots like Spain, Portugal and Greece. For economy passengers travelling to Band A destinations, they will be required to pay £15 instead of the current £13 rate, while those flying business, first, and premium economy will see rates jump from £28 to £32.
“Extending the scope of the higher rate ensures the tax is applied consistently and that those who can afford to fly privately make a fair contribution alongside commercial air passengers,” the Chancellor Reeves said. The amount of UK APD per passenger depends on aircraft characteristics, seating configuration, class of travel, whether the destination is within or outside of the UK and the geographical distance of the capital city of the destination country/territory from the UK’s capital London.
Ryanair believes the APD is a burden that increases the price of flights, disproportionately affecting budget airlines and their passengers. The airline’s CEO, Michael O’Leary, has stated that abolishing or cutting APD would allow Ryanair to offer more services and expand its presence in the UK, particularly in regional airports.
Ryanair warns that higher APD rates make the UK a less attractive and less competitive destination for tourism and investment compared to other countries that have lower or no aviation taxes. And last October, the chief executive of Jet2.com and Jet2holidays, Steve Heapy, during the ABTA concention in Magalluf, warned the UK government not to treat the travel and airline sector as a ‘cash cow’.