Jet2 warns aviation tax hikes could make holidays too costly for some

The boss of Jet2 has warned the government against hiking taxes on aviation as it would mean some cash-strapped consumers cannot afford holidays.

 

Speaking as the airline unveiled its Gatwick base, chief executive Steve Heapy said some consumers are worried about the Budget on November 26 – and if tax rises mean some low-income families can’t afford a holiday, that would be “a disgrace”.

 

“I would urge the government not to increase taxes on flying and that’s any taxes,” Heapy told a Travel Weekly webcast.

 

“People very often talk about APD [air passenger duty], but it’s not the only tax we pay.

 

“We pay carbon tax. We’re losing allowances on fuel. We are having to put a higher amount of Sustainable Aviation Fuel, SAF, into our fuel mix – 2% this year, 3.6% next year, and it costs three times more than aviation fuel. All these are taxes that increase the cost of flying.”

 

He continued: “Whether it’s an overt or a covert tax, taxes on flying should not be increased, because taxes are demand management measures…putting taxes up on flying will reduce demand.

 

“Who are the people that won’t be going? It won’t be the rich and privileged, it will be the least wealthy members of society.

 

“So these taxes on aviation are regressive. They will stop people at the lower end of the income scale to go on holiday. That, for me, is just completely wrong.

 

“Everybody has a right to go on a holiday. Everyone works bloody hard in this country. Everyone wants their slice of sunshine and different cultures.

 

“I think that the ever-increasing tax burden on flying on holidays is going to mean some members of society will not be able to afford their flight or holiday. And I think that’s disgraceful.”

 

More: Jet2 boss urges government not to use travel industry as ‘cash cow’

 

He said that “flying should be for everyone, not just the rich and privileged”, adding: “I would be shocked if that was taken away by ever-increasing tax burdens on flight. I think that’s wrong.”

Heapy said concern about the Budget has contributed to “a very late booking market” as consumers are holding back on their spending.

 

“We’ve seen unemployment go up a bit over the last few months, so maybe people are getting nervous about that,” he added.

 

“But I think, once the budget’s out of the way, people will have certainty, because the worst thing is uncertainty.”

 

His comments came as Jet2 revealed it will start offering flights and holidays from Gatwick from March 2026. He said the move will create 300 jobs, including customer helpers, ground operations staff, engineers, cabin crew and pilots.

 

More indirect jobs will also be created, such as head office roles and employment at other businesses in the Gatwick area.

 

“It is a great boost for GDP, and we’re very happy to be helping the government in its aspiration to provide growth into the UK economy,” he added.

 

Heapy noted how Jet2 and others in the aviation section have lobbied the government about taxation, adding: “We certainly make ourselves heard – whether they take note, I don’t know.”

 

He urged the government to help the airline industry on its journey to decarbonisation through two measures: the implementation of the revenue certainty mechanism for SAF which would see SAF plants being built in the UK, and airspace modernisation, which could decrease carbon dioxide emissions by anywhere between 10 to 12%.

 

“Those two measures, which are firmly within the government’s control, will be the two biggest decarbonisation measures out there,” he concluded.