The first Saturday in January is the most popular day of the year to book a holiday,[1] but with UK travellers facing some of the highest taxes on air travel in the world,[2] going abroad may be more expensive than many expect. Air passenger duty (APD) is paid by passengers departing from UK airports on most aircraft and varies based on cabin class and destination. Introduced in 1994, it was originally meant to address the supposed under-taxation of air travel.[3] However, the rationale for the tax subsequently expanded to reducing carbon emissions which the then chancellor of the exchequer, Gordon Brown, cited as the reason for doubling APD in 2007.[4]
Since its introduction the tax has grown in complexity and magnitude. New bands have been added and removed, then added again, with rates for some bands increasing in line with or above inflation while others have remained frozen.[5] In October 2024, chancellor of the exchequer, Rachel Reeves, announced an increase in APD for all cabin classes and destinations, taking effect in 2026.[6] Reeves claimed the rise was necessary because “air passenger duty has not kept up with inflation”.[7] Yet current rates of APD are higher than what they would have been had they increased by inflation since 1994.
This note presents the most popular holiday destinations and the amount of APD travellers will pay if they fly abroad in 2025 and beyond.
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Key findings
- A family of four flying in economy to a destination outside of Europe such as the United States will pay £352 in APD in January 2025, rising to £408 in April 2026 – a 16 per cent increase.[8]
- Spain is the most popular destination for those planning a holiday in 2025, with economy passengers currently paying £13 in APD. This will rise to £15 in April 2026.
- The United States is the third most popular destination for 2025. Travellers currently pay £88 in APD on an economy ticket there, rising to £90 in April 2025 and £102 in April 2026.
- Australia is the ninth most popular destination for 2025, with those travelling in economy currently paying £92 in APD, rising to £94 in April 2025 and £106 in April 2026.
- Inflation was 106 per cent from 1994 to October 2024, in that same period:
- APD for band A destinations has risen by 160 per cent
- APD for band B destinations has risen by 780 per cent
- APD for band C destinations has risen by 820 per cent
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[1] Hanlon, T., Brits gear up for 'Sunshine Saturday' on most popular day to book post-Christmas holiday, Mirror, 3 January 2024.
[2] Trend, N., The tax rise that means it now costs up to £808 for a family to leave the country, The Telegraph, 7 March 2024.
[3] Seely, A., Air passenger duty: introduction, House of Commons Library, February 2019, p.5.
[4] Seely, A., Air passenger duty: introduction, House of Commons Library, February 2019, p.19.
[5] HM Revenue & Customs, Air Passenger Duty historical rates, 28 June 2024, www.gov.uk/government/statistics/air-passenger-duty-bulletin/air-passenger-duty-rates, (accessed 12 December 2024).
[6] HM Revenue & Customs, Air Passenger Duty: rates from 1 April 2026 to 31 March 2027, 30 October 2024, www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027, (accessed 12 December 2024).
[7] Lancefield, N., Chancellor announces rise in flight taxes, The Standard, 30 October 2024.
[8] Based on four individuals over the age of 16.