general

UK to raise passenger tax on long-haul flights

The UK announced another increase in its Air Passenger Duty—a departure tax—on the same day the country’s transport minister emphasised how important airports are to the nation’s future prosperity. In his annual budget speech Oct 29, finance minister Philip Hammond said long-haul flights from UK airports would see APD—already the world’s highest departure tax—increase in line with inflation. This will see the APD for economy-class seats on long-haul flights—more than 2,000 miles—rise by GBP2 (US$2.60) to GBP80, while premium cabin passengers will see the APD rise GBP4 to GBP176. The new rates take effect in spring 2020. The APD for short-haul flights will be frozen. APD is estimated to add GBP3.5b annually to the govt’s coffers. <br/>