The Treasury confirmed the government expects to see the benefit of abolishing APD on children under-12 next year passed on to passengers who have already booked.
Carriers were quick to confirm they would do so. EasyJet said it would refund the APD for customers who have already booked tickets for children over two and under-12 on or after 1 May.
Thomson Airways welcomed the decision and confirmed: “We will refund any APD that is no longer applicable and reflect the changes in Thomson and First Choice holiday prices moving forward.”
However, a spokesperson for the airline said: “We believe further reform is required and remain fully supportive of the Fair Tax on Flying campaign.”
Monarch Group chief executive Andrew Swaffield (pictured) said: “We will be reflecting this change in our pricing on bookings.
“Monarch Airlines will be refunding the APD for customers who have already booked tickets for children aged between two and 11 on flights departing UK airports on or after 1 May 2015.
“Where customers have booked a package holiday with a deposit only, the final holiday price will reflect the changes announced today.”
Swaffield described the announcement as “a clear indication that the government is listening to the travel industry”.
Thomas Cook chief air travel officer Christoph Debus described the announcement as “great news for families” and said: “We are pleased the Chancellor has implemented this alongside the long-haul changes from next year, meaning millions of families will benefit when they choose their next summer break.”