What the rise in Air Passenger Duty means for you

Hidden away in small print in a secondary document of Chancellor George Osborne’s Autumn Statement is an 8% increase in Air Passenger Duty (APD) starting in April next year.

This controversial move was opposed by airline bosses, and actually saw them united against the fee last week, along with many passengers and travel industry professionals.

But what is APD and how will it affect you?

What is Air Passenger Duty?

APD is a tax on passengers flying from the UK. It is included in the cost of your flight, or added on at the checkout before you pay.

It was originally meant to cover the cost of environmental damage caused by aviation, but the Government admitted last week that the tax is primarily a revenue generator for the cash-strapped public pot.

APD has been steadily rising over the years, with the exception of 2011, when it was frozen, but many passengers are finding the inflation-busting 8% increase for 2012 difficult to swallow.

How much extra will this cost me?

That all depends on whether you book economy seats and how far you travel.

A family of four travelling more than 6,000 miles, to Australia for example, in economy class will pay an extra £28. If the family is travelling premium economy or higher they’ll pay an extra £112.

Short-haul distances are a bit more forgiving, less than 2,000 miles (to the Continent) will see a price increase of £1 per person for economy or £2 for all other classes.

One of the criticisms levelled at the Chancellor is that families making a small upgrade on long-haul flights are hit with the same tax increase as wealthy executives flying Business or First Class.

What if I’ve already booked a flight?

If you’ve already booked your flights, along with seven million others, you will still have to stump up the difference.

Virgin Atlantic’s chief commercial officer Julie Southern echoed many passengers’ thoughts on the hike after hearing the news.

“People would never be expected to pay extra duty for the petrol already sitting in their cars or wine sitting in their fridge, so why does the Treasury think it is acceptable to retrospectively charge airline passengers?” she said.

Is there anything I can do to avoid APD?

APD has to be paid on every flight out of the UK, however, there is a way to minimise the amount you are paying on long-haul flights. By booking a flight to a European hub, such as Amsterdam, you could take in some local sights for 24 hours and fly on from there, booking a separate flight to your final destination and avoiding the APD on that flight.

To absorb the costs of APD on short-haul flights, make sure you book your airport parking with us. We’ve just abolished the £1 booking fee making us the only airport parking booking agent that charges no fees for booking or card payments. Check out www.looking4parking.com or call 0800 098 8817 to book.

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