Members of the Fair Tax on Flying coalition have agreed to continue the campaign following a meeting at Abta headquarters this week, as latest booking and departure figures showed a further decline in travel to long-haul destinations.
Analyst GfK Ascent reported long-haul sales for the summer down 10% year on year to the end of March, against a 7% increase in short-haul bookings. Medium-haul sales were flat although Egypt remains 30% down on a year ago.
The Office for National Statistics reported a 4% year-on-year decline in February for departures to countries beyond Europe and a 5% fall to North America. Departures to Europe were 2% up.
It is believed high rates of Air Passenger Duty (APD), allied to the soaring oil price, are to blame for the long-haul decline. The unprecedented Fair Tax on Flying industry alliance includes all the major UK airlines bar easyJet, Europe’s biggest travel groups Tui Travel and Thomas Cook, the airport operators and trade organisations.
A coalition steering group will draw up plans for the campaign’s next phase which will target consumers and seek to draw in the support of non-travel organisations while maintaining lobbying activity throughout the summer.
Abta said: “Getting the government to see sense on the level and structure of aviation tax was always going to be a considerable task. It will continue to require a concerted effort from all in the travel industry.” A spokeswoman added: “No one is backing out of the campaign. We can be pleased with the initial success.”
The Treasury is seeking evidence on the impact of current APD rates as the government consults on changes to the tax after applying a freeze in the Budget last month. However, the Chancellor plans further rate increases next April.
GfK Ascent reports sales to the Caribbean down 18% year on year at the end of last month, with APD contributing to a £70 rise in average price. The Caribbean is especially hard hit by the tax as flights to the region carry a higher APD rate than to the US and Hawaii.