Higher duty for non-economy passengers in the UK, Spring Budget

UK chancellor of the exchequer Jeremy Hunt has confirmed in his Spring Budget speech on March 6, 2024, that he will increase the air passenger duty (APD) for business and first-class passengers on domestic and international flights departing from the UK. The duty applies on each ticket purchased. Current APD rates range from £6.50 ($8.29) and £601 ($766.47), with factors including class of travel and distance. The Office for Budget Responsibility (OBR) estimated, under the current charges, that the tax would have raised £3.8bn ($4.8bn) in 2023-2024. Trade association representing UK airports Airport Operators Association chief executive Karen Dee said: ""It is disappointing to see the Chancellor increase Air Passenger Duty for business travellers, especially when data show this group is still to recover to 2019 levels. It is difficult to see how this squares with the government’s previous commitment not to increase aviation taxes."" Dee added: ""Business travellers are responsible for increasing foreign investment in the UK... We should be encouraging them to come to the UK, making it easier for them to invest here, not putting yet more barriers in their way."" An unintended consequence of this duty increase may be that passengers seek shorter flights from the UK to hubs such as Amsterdam Airport Schiphol or Paris Charles de Gaulle Airport before connecting on a longer haul journey. The budget comes ahead of a UK general election expected sometime this year.