Scotland could see in excess of one million fewer air passengers over the next three years because of the rising cost of Air Passenger Duty (APD).
A report commissioned by Glasgow, Edinburgh and Aberdeen airports warns the tax rise on flights last November may discourage up to 1.2 million passengers – including 150,000 international visitors to Scotland.
Domestic traffic could plunge by 500,000 passengers over the three years, according to the report by industry analyst York Aviation.
Such a fall in demand would undermine the viability of some routes on top of forfeiting up to £77 million in tourism spending.
APD on economy fares rose by £1 per person on short-haul routes last November, but by up to £30 on long-haul – and double that amount in premium seats – adding up to £85 in UK tax on some tickets. To make matters worse, passengers flying to and from Scotland pay APD twice if they fly via another UK airport such as Heathrow.
Glasgow Airport managing director Amanda MacMillan said: “If it is too expensive to fly to Scotland, tourists and airlines will go elsewhere. Ministers must look again at the impact of this damaging and unfair tax.”
The government has indicated a statement on APD will form part of the Budget on March 23, with Treasury forecasts anticipating rising income from the tax over the next few years.
Edinburgh, Glasgow and Aberdeen airports are managed by BAA, which also operates Heathrow and Stansted.