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Scottish agents urge APD hike rethink

Agents in Scotland face “additional challenges” in the face of a rise in Air Passenger Duty and threatened airline route reductions.

The warning came from the Scottish Passenger Agents’ Association as it urged action from the UK and Scottish governments.

The SPAA called for a rethink of proposed increases in APD and for both governments to explore measures to safeguard Scotland’s connectivity and the viability of its aviation sector. 

Specifically, the SPAA wants both governments to look at:

  • Re-evaluation of APD Increases: A thorough review of the economic impact of APD on Scotland’s travellers and the broader travel trade
  • Support for regional and domestic routes: Ensuring critical domestic routes are maintained and supported, particularly for remote and rural areas reliant on Public Service Obligations (PSOs)
  • Collaboration with airlines: Working with carriers to address punctuality and reliability concerns while incentivising the retention of routes that are vital to Scotland’s connectivity.
  • Investment in sustainable aviation: Supporting innovation and investment in sustainable aviation to balance environmental objectives with connectivity needs.

The association believes that the proposed rise in APD will exacerbate existing cost pressures on passengers, particularly those travelling on domestic and short-haul routes. 

It fears the increase will reduce the affordability of air travel for many Scottish households and businesses – an essential lifeline for a nation reliant on aviation to connect with the rest of the UK, Europe and beyond.

The planned APD rise will also have a “significant impact” on the Scottish travel trade and SPAA members. 

“Travel agents, already navigating the complexities of a rapidly evolving marketplace, will face additional challenges in supporting their clients amid rising costs, fewer flight options, and increased uncertainty,” the trade body warned.

In addition to the concerns over the rise in APD, the SPAA points to continued challenges with punctuality and reliability in Scotland’s aviation connectivity.

Findings from the Scottish Tourism Alliance (STA), presented to the House of Commons Scottish Affairs Committee, highlight persistent challenges with the punctuality and reliability of flights between Scotland and London, as well as with regional connections.

SPAA president Jacqueline Dobson said: “We are alarmed by recent announcements from some airlines regarding route reductions in response to these tax increases.

“Such decisions risk leaving Scotland with diminished connectivity and limited options for travellers, with particular consequences for those reliant on domestic services to London and other key hubs.”

Dobson added: “A reduction in air connectivity will also affect the ability of SPAA members to offer competitive, flexible, and reliable travel solutions. 

“This could result in a decline in the economic viability of the sector, with wider implications for jobs and investment in the travel industry across Scotland.

“The effects of reduced connectivity extend far beyond individual passengers. The aviation sector is integral to Scotland’s economy, supporting tourism, trade, and investment. 

“A reduction in flight options or route cancellations will not only hinder inbound tourism but also negatively affect businesses seeking to export goods, attend meetings, or participate in trade fairs.

“The planned APD increases and resulting route reductions will amplify these challenges.

 “For businesses and travellers already contending with disruptions, the loss of vital routes or reduced frequency will make travel planning even more uncertain and prohibitively expensive.”

APD on economy class short-haul flights will rise by “no more than £2”, chancellor Rachel Reeves said as part of her first Budget in October.

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