The Federation of Tour Operators has lost its legal challenge to the Treasury over the doubling of Air Passenger Duty in February.
Lord Justice Stanley Burnton in the High Court found the Government had failed tour operators on three counts in imposing the tax rise at short notice.
He said the Treasury failed to consider the impact of the rise on tour operators, that it would have been relatively easy to have given the trade time to adjust, and that the tax was retrospective.
But he ruled that the Chicago Convention, which established the regulation of commercial air traffic, did not outlaw taxes such as APD. This was the core of the FTO case.
The FTO expressed disappointment at the High Court’s decision and said it would consider seeking legal appeal.
It said in a statement: “The Federation of Tour Operators is disappointed that the High Court … has failed to uphold the strong case presented to it.
“There are wider potential international ramifications of the judgment, and these and other aspects will be considered as the FTO seeks advice on its grounds for possible appeal.”