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Air Passenger Duty will increase again in 2024, but not by much

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On 1st April 2023, Air Passenger Duty (APD) will rise for all passengers on flights departing a UK airport.

This is an increase announced by Rishi Sunak, back when he was chancellor in October 2021, and includes the new rate of reduced APD for domestic flights and an additional band for ultra-longhaul flights:

uk budget apd
Air Passenger Duty 2023-2024Cheapest cabinOther cabins
Band A (0 – 2,000 miles)£13£26
Band B (2,001 – 5,500 miles)£87£191
Band C (5,501+ miles)£91£200

APD will continue to rise. On Wednesday’s budget, Jeremy Hunt announced that APD would increase again on the 1st April 2024:

APD rates will increase in line with RPI for 2024-25 rounded to the nearest pound, meaning that short haul international rates remain frozen, benefiting more than 70% of passengers. Following a 50% cut in APD for domestic flights in 2023-24, the rate for domestic flights will increase by 50p to £7. The long haul and ultra-long haul economy rates will increase by £1.

The good news for short haul flights is that APD will remain fixed at £13 for the 10th year in a row.

Air Passenger Duty 2024-2025Cheapest cabinOther cabins
Band A (0 – 2,000 miles)£13£26
Band B (2,001 – 5,500 miles)£88£194
Band C (5,501+ miles)£92£202

Despite claiming this is an inflationary increase, in reality it is much less given how it is being rounded down. The long haul economy rate is increasing by just 1.15% whilst ultra-longhaul grows by 1.10% – far below inflation.

Increases in premium cabins are similarly small, with an uplift of just 1% on premium ultra-longhaul flights.

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