Aviation sector criticises further rises in APD from 2027

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The aviation sector has criticised government plans to increase the rate of Air Passenger Duty (APD) again in 2027, following the rise which is already due in April 2026.

Details of the increases were released as part of the Budget announced by Chancellor Rachel Reeves on Wednesday afternoon (November 26).

The industry already knew APD will rise from £13 to £15 on short-haul economy fares from next April, with larger increases on long-haul and premium rates.

Now, the rate will increase further, at the rate of inflation, from April 2027, along with the expansion of the higher rate to cover all private jets over 5.7 tonnes.

The government announced it will “uprate all rates of Air Passenger Duty in line with RPI [retail price inflation] from 1 April 2027”.

The economy rate of APD on short-haul international flights will increase from £15 to £15.49 from 2027.

The premium short-haul rate will rise by £4 to £32 in 2026 and to £33.04 in 2027. Long-haul rates will rise to £102 and £106 in economy depending on the distance next year, with those figures rising to £105.33 and £109.46 in 2027.

Long-haul rates for premium economy will rise from £244 for flights up to 5,500 miles and £253 for those over to £251.95 and £261.25 respectively.

Those paying the higher rate of APD will be charged £142 for short-haul and £1,097 and £1,141 for the two long-haul bands from next April, with those fees rising in 2027 to £146.63, £1,132.76 and £1,178.20.

The government announcement of APD rates for 2027-28

The British Airline Pilots Association (Balpa) said that it “condemned” the Budget as “bad news for the aviation industry”.

Alice Sorby, Balpa director for strategy and reform, said: “This Budget is bad news and more bad news for the aviation industry.

“Firstly, the chancellor has ignored calls from Balpa…and the industry and announced plans to increase Air Passenger Duty in line with RPI from April 2027.

“Bad news for passengers, especially families going on holiday, who now face increased ticket prices.”

Sorby also said the Budget had “even more bad news” for people considering a career as a pilot as there were no measures to make “eye-watering” training costs more affordable.

Dan Owens, chief executive at Belfast International Airport, said: “For a Chancellor and government that talks about growth, today’s Budget will likely damage the UK’s tourism and aviation sector with its increase in Air Passenger Duty.

“As an island off an island, Northern Ireland needs air travel, as we do not have the option of rail connectivity that the rest of the UK has.

“This is an additional tax on air travel that the Irish Republic does not have and therefore it makes Northern Ireland less attractive to airlines considering introducing new routes. This is a harmful tax that suffocates economic growth.

“The failure of the UK government to act means we will now ask the NI Executive to step in.

“If the Executive is committed to meeting its target of increasing the value of tourism in Northern Ireland to £2 billion by 2030, then it needs to look at reducing APD as it is a proven way to deliver greater international connectivity and economic growth.”

At the Autumn Budget in 2024, the government announced plans to extend the higher APD rate to private jets of more than 5.7 tonnes.

“Following consultation, the government will proceed with this change,” added today’s statement.