The Airport Operators Association wants Air Passenger Duty cut to overcome the increased costs of the European Emissions Trading Scheme.
In a budget submission to Chancellor George Osborne, the AOA called on the Treasury to take account of the fact that APD has increased by between 140% for short-haul flights and 325% for long haul since 2007.
AOA chief executive Darren Caplan said: “Aviation is now in the EU Emissions Trading Scheme, which we support as the best way to deal with emissions from aircraft in the absence of a global deal.
“However, revenues received by the government from auctioning carbon credits simply mean that passengers face double taxation.
“We call on the government to ensure that APD is not increased, but reduced by an equivalent amount to the revenue raised by ETS. In this way we can help to ensure that aviation can play its full part in connecting the economy for jobs and export-led growth, across all regions of the UK.”
He said AOA researched showed that passengers departing the UK pay the highest level of aviation tax in Europe, amounting to 8.5 times more than the European average, at the top rate.
“The Prime Minister, the Deputy Prime Minister and the Chancellor have all stated the importance of the BRICs to the future growth of the UK economy,” said Caplan.
“APD is at odds with this desire. It puts the UK at a significant competitive disadvantage against our European competitors, when trying to attract routes to these economies.”