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UK Increases Air Passenger Duty, Targets Premium Cabins and Private Jets

Chancellor Jeremy Hunt announces inflation-linked APD hikes for 2025-26, with significant increases for premium travelers.

  • The UK government has announced an increase in Air Passenger Duty (APD) for the 2025-26 financial year, with rates rising in line with inflation.
  • Premium economy, business class, and private jet passengers will face sharper APD increases, reflecting recent high inflation rates.
  • The increase is expected to generate an additional £110 million in revenue in its first year, amidst criticism from the aviation industry.
  • Critics argue the hike will harm the competitiveness of UK aviation and burden businesses, charities, and researchers with higher travel costs.
  • The UK already leads globally in taxing air travelers, with some of the highest APD rates worldwide.
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