Cheaper Avios redemptions as Air Passenger Duty cut in budget

From a miles and points perspective, the key point in the UK Budget Statement yesterday was not the cut in Bingo Duty to 10%, nor the freezing of cider duty, but a cut in the rate of Air Passenger Duty to certain long-haul destinations.

Except for one flight from Belfast, the current rates of Air Passenger Duty are as follows:

0 – 2,000 miles:   Economy £13, Other £26

2,000 – 4,000 miles:  Economy £67, Other £134

4,000 – 6,000 miles:  Economy £83, Other £166

6,001 miles:  Economy £94, Other £188

The distances are NOT based on your flight but the distance from London to the capital city of the country you are visiting.  The exact band for each country can be found in Appendix 1 here.

In the changes announced yesterday, the two highest bands will be abolished from 1st April 2015.   Based on the current figures, which will be adjusted for inflation before April 2015, APD on Economy tickets to anywhere over roughly 8 hours flying time will fall by up to £27 and by up to £54 in Business.

The numbers are still crazy, of course.  A family of four flying in Economy will still face a tax bill of £268.  Any reduction is better than nothing, though.

The Chancellor also announced an increase in the Regional Air Connectivity Fund, which either a) wastes your money by paying airlines to operate uneconomic routes or b) encourages airlines to launch new routes at a time of economic hardship, depending on your political leaning.

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How to earn Avios from UK credit cards (October 2024)

As a reminder, there are various ways of earning Avios points from UK credit cards.  Many cards also have generous sign-up bonuses!

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

There are two official British Airways American Express cards with attractive sign-up bonuses:

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points. These points convert at 1:1 into Avios.

Run your own business?

We recommend Capital on Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios.

There is also a British Airways American Express card for small businesses:

There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.

SPECIAL OFFER: Until 22nd October 2024, the bonus on American Express Business Platinum is increased to up to 80,000 Membership Rewards points, worth 80,000 Avios. You will receive 8 points per £1 spent for the first three months, on up to £10,000 of spending. Click here to read our full card review. Click here to apply.

SPECIAL OFFER: Until 22nd October 2024, the bonus on American Express Business Gold is increased to up to 40,000 Membership Rewards points, worth 40,000 Avios. You will receive 4 points per £1 spent for the first three months, on up to £10,000 of spending. The card is FREE for your first year. Click here to read our full card review. Click here to apply.

Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.