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The Air Passenger Duty (APD) is one of the infamous taxes you pay on flights departing the United Kingdom. While the APD typically increases annually to account for inflation (as will be the case in 2024), the U.K. government is planning a big one-off adjustment in 2025 to offset higher-than-normal inflation.
Here's what the increasing Air Passenger Duty means for you.
U.K. To Hike Air Passenger Duty in 2024 and 2025
Not to be confused with fuel surcharges or any of the other fees baked into the cost of your ticket, the APD is an entirely separate entity. It's a tax levied by the government on passengers taking a flight out of the U.K. — not on passengers transiting through the U.K. or flying to it.
The Air Passenger Duty varies depending on the cabin and the distance traveled — measured between London and the capital city of the country you're flying to. Reasonably, you'll pay more for a long-haul premium cabin seat than a short-haul economy one.
Traditionally, the U.K. government hikes the APD annually to account for inflation. This will happen in 2024, but the Spring budget indicates that the U.K. plans an even more significant hike in 2025. In recent years, inflation has run hotter than normal, and that's solely the justification for next year's substantial increase.
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2024 APD
Starting on April 1, 2024, the new APD for the rest of 2024 and the first three months of 2025 will kick into effect. Increases in each cabin are marginal, jumping by no more than £3 in each cabin (equivalent to ~$3.85).
| Distance | Economy | Economy Increase From 2023 | Premium economy, Business class, and First class | Premium Increase From 2023 |
|---|---|---|---|---|
| Domestic (Flights within England, Scotland, Wales, and Northern Ireland) | £7 | £0.50 | £14 | £1 |
| Less than 2,000 miles | £13 | No Change | £26 | No Change |
| Between 2,001 and 5,500 miles | £88 | £1 | £194 | £3 |
| 5,501 miles and greater | £92 | £1 | £202 | £2 |
2025 APD
The one-time inflation-adjusted APD will take effect on April 1, 2025. The intended changes target premium cabins, which is a generous term for any seat featuring more than 40 inches of pitch.
| Distance | Premium economy, Business class, and First class | Premium Increase From 2024 |
|---|---|---|
| Domestic (Flights within England, Scotland, Wales, and Northern Ireland) | £16 | £2 |
| Less than 2,000 miles | £28 | £2 |
| Between 2,001 and 5,500 miles | £216 | £22 |
| 5,501 miles and greater | £224 | £22 |
This significant increase will make U.K. departures in non-economy seats that much more expensive, which is rather frustrating. On long-haul and ultra-long-haul flights, you're looking at paying at least £22 (equivalent to ~$28.18) for a premium seat out of the United Kingdom.
The government hasn't yet shown its hand and revealed the extent economy APDs will rise next year. However, it's unlikely any increase will be as drastic as those for premium cabins, as the government probably would have lumped that bad news in with the already announced changes.
Tips To Minimize the Air Passenger Duty
You can't avoid the APD completely on flights out of the United Kingdom. Even on short-haul or domestic flights, you'll still pay the tax, although it's less of a burden.
However, there are some creative ways to pay less tax, such as taking a positioning flight out of the U.K. to a country that doesn't impose an APD or avoiding flying out of the U.K. altogether.
Related: Tired of Huge Fees on Award Flights? Fly From These Countries That Limit Fuel Surcharges
For example, if you're taking a vacation in the U.K. and want to head back to the United States or Canada in business class, one option is booking a cheap flight to a city like Dublin (DUB), Madrid (MAD), or Helsinki (HEL).
Booking your business class ticket out of a non-U.K. country means you'll only pay the short-haul APD, which is far less than the long-haul or ultra-long-haul APD. Then, flying in business class from these other countries would likely incur a lower cash payment on your award ticket.
Alternatively, you could avoid APDs entirely and take a train or other mode of transportation out of the United Kingdom. Similar to the short-haul flight example above, there's a cost to leaving the U.K., but it might still be cheaper than paying the long- or ultra-long-haul APD on your business class flight from London.
Final Thoughts
The United Kingdom will soon make flying out of the U.K. more expensive. On April 1, 2024, the Air Passenger Duty tax will increase marginally, which pales in comparison to the one-off big adjustment next year in premium cabins to account for inflation.
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