The UK government has announced that the Air Passenger Duty (ADP) will be slightly increasing from next year and then again from 2026, with different benchmarks set for different types of flights. Fow short-haul low-cost trips, the increase will only take effect in 2026 and will translate in up to £2 per ticket, which has prompted Ryanair to announce a reduced schedule from next year.
“Air passenger duty has not kept up with inflation in recent years so we are introducing an adjustment, meaning an increase of no more than £2 for an economy class short-haul flight,” Chancellor Rachel Reeves said.
In response to the announcement, Ryanair has said the decision to increase APD on short-haul low fare air travel will “further burden ordinary UK families travelling abroad on Holidays or to visit friends and families”, arguing that the increased tax will damage UK tourism, jobs and economic growth, especially the UK Regions, with Regional Airports being particularly damaged.
In a statement, the airline exemplified that a family of 4 flying to Spain on a low-cost holiday next year will pay £60 in air travel taxes. According to the carrier, that will go to a government “whose Minister receives £1000’s in free clothes and concert tickets”. The higher tax, Ryanair argued, will make the UK a less competitive destination for tourism and airline investment, which, in turn, will lead to job losses that will be “especially damaging for UK Regional Airports and for UK domestic flights (which pay APD on the double).”
Ryanair CEO, Michael O’Leary, stressed that, as an island economy on Europe’s periphery, the UK should focus on reducing air access costs, not increase them. He argued that lower costs would enable low-fare airlines to boost tourism, traffic, visitor numbers and job creation, particularly in regional areas. Instead, he said that Chancellor Rachel Reeves’ decision will hinder the UK’s growth potential and make air travel significantly more expensive for UK families travelling abroad.
“Chancellor Rachel Reeves idiotic decision to further raise the UK’s already high air travel taxes (…) will make the UK a less competitive destination compared to Ireland, Sweden, Hungary and Italy where these Govt’s are abolishing travel taxes to stimulate traffic, tourism, and jobs growth in their economies,” O’Leary said, adding that “Ryanair will now review its UK schedules and expects to cut capacity to/from UK airports by up to 10% in 2025. This will reduce air travel to/from the UK by up to 5 million passengers as the Labour Govt’s budget delivers higher taxes and tourism declines not growth.”
O’Leary is not the only one condemning the decision. Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, has also argued that the APD already hinders the country’s competitiveness and its increase will further impact growth and affect “ordinary travellers” the most. “We need a revised and joined-up approach to the UK’s strategically vital aviation sector,” he said.