Tax rise outlined in Budget for airline passengers in premium cabins

Airline passengers travelling in premium cabins will be hit by a tax hike.

Chancellor Jeremy Hunt announced a “one-off adjustment” to the level of air passenger duty (APD) for those with non-economy tickets, such as premium economy, business class and first class.

In his Budget speech, Mr Hunt said the measure will “account for high inflation in recent years”.

APD for passengers in premium cabins on departures from UK airports currently ranges from £13 to £200 based on the distance of the flight.

The PA news agency has asked the Treasury for details of the increase.

Clive Wratten, chief executive of the Business Travel Association industry body, said: “The introduction of an increase in non-economy air passenger duty is disastrous for the economic welfare and wellbeing of British businesses and their employees.

“Contrary to common misconceptions, business travel is not just for the wealthy.

“This tax will hinder growth for small and medium enterprises through limiting international collaboration opportunities.

“It will hit charities, academics and researchers alongside businesses of all sizes combating rising costs in every area.

“There is no mechanism for ensuring that the monies from this tax will go into innovation in the airline sector nor into sustainable aviation fuels.

“This is therefore just another tax on British businesses.”