Autumn budget: Air Passenger Duty changes to hit long-haul passengers

Chancellor Rishi Sunak announced comprehensive reforms of the controversial passenger tax (APD) for air travelers.

The current tariffs are divided into two areas for up to 2,000 and more than 2,000 miles, with premium class passengers paying double the tariff of the economy tariffs.

The Chancellor confirmed a 50% cut in the APD on domestic flights along with a new “long-haul” tariff on flights of more than 5,500 miles from April 2023.

The new fare starts at £ 91 per passenger on an economy flight. The prices for business class and premium economy seats will be twice as high.

However, the fare will be just a few pounds higher than the previous long-haul fare of £ 82 on economy flights, which is set to rise to £ 84 per passenger from April next year and the premium fare by £ 5 to £ 185.

Sunak said, “Right now, people are paying more for round-trip flights within and between the four nations of the UK than when they fly home from abroad.

“We used to have a return flight exemption for domestic flights, but had to cancel it in 2001. But today I can announce that flights between airports in England, Scotland, Wales and Northern Ireland will be subject to a new lower regulation from April 2023.” Passenger tax rate. “

The Chancellor added: “We are also making changes to reduce CO2 emissions from aviation. Most of the emissions come from international rather than domestic aviation. That’s why I’m introducing a new ultra-long-haul band in passenger service from April 2023 – for flights over 5,500 miles with an economy fare of £ 91.

“Less than 5% of passengers pay more, but those who fly the farthest pay the most.”

The new fare for flights longer than 5,500 miles includes travel to South Africa, South America, Southeast Asia, Japan and Australasia. Before the increase comes into force, a rush of long-haul bookings can be expected.

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