The United Kingdom decided to increase the Air Passenger Duty (APD) tax despite the significantly fallen demand for air travel.
According to the Policy Paper, the Air Passenger Duty (APD) for long haul flights will increase from £82 to £84 starting from April 2022. Passengers flying the long haul in premium economy, business, or first class will need to pay £5 more than they currently do: £185 instead of £180 in 2021.
The APD for customers of long-haul private jet services will increase by £13, meaning that the tax will jump from the current £541 to £554.
The governmental decision to increase the duty has raised doubts that the higher taxes might have a negative impact on the already COVID-affected passenger demand for air travel as it makes the flights more expensive.
The APD is applied for any commercial flight operations for passengers who depart from the UK on a jet that has an authorized take-off weight of more than 5.7 tonnes or is equipped with a set capacity for more than 20 passengers. However, the duty is not applied for inbound international passengers who are transiting the UK on one ticket within 24 hours of their scheduled time of arrival in the country.