UK raises business class APD flight tax to $500

Australians visiting London and other parts of the UK will be charged a $500 flight tax on premium economy, business class and first class fares when returning home.

This is the latest increase to the controversial Air Passenger Duty, which applies to all commercial flights departing from the UK. When introduced in 1994, ostensibly as an airline-wide fuel tax, the fees started at a modest 5-10 (depending on distance). I've been climbing ever since.

The APD fee increase, announced by Britain's new Labor government as part of its budget this week, comes ahead of the January 2025 start date for the mandatory A$20 electronic travel authorization required for all travelers currently enjoying visa-free status.

Read more:Australians will soon need a travel permit to visit the UK.

Prime Minister Rachel Reeves said the APD had failed to keep up with inflation in recent years despite annual incremental increases in taxes on premium economy, business and first class long-haul international flights, which are already set at 202 (the economy equivalent is 92).

The previous Conservative government had already earmarked April 2025 for a one-off adjustment to non-economy passengers to account for the high inflation of recent years and help maintain the value of APDs in real terms.

The impact will result in a tax of 224 (AUD$440) being added to the tickets of all premium economy, business class and first class travelers departing the UK on flights over 5,500 miles from London.

Now, another jump is scheduled for April 2026, with the APD for premium class on the longest flights (over 5,500 miles or 8,850km) rising to 253 (A$496).

But the biggest jump will affect the private jet set, with a 50% increase to around A$1100 (A$2156) for medium- to long-haul flights on private or charter business aircraft.

APD charges vary widely depending on the distance you fly from London and the class of service you fly, with the economy fee and all fees above and beyond.

The further you fly from the UK, the higher the departure tax.

Domestic flights within the UK are charged one fare, while international flights fall into one of three distance-based bands.

Band Ais for flights to international destinations whose capitals are 2,000 miles or less from London (basically all of Europe and parts of North Africa) Band C for flights to international destinations whose capitals are between 2,001 and 5,500 miles from London are: The longest flights to countries whose capitals are more than 5,500 miles from London, including Australia and most of Asia.

The lowest fares apply to classes of travel with seat pitch less than 40 inches (usually economy), with higher fares for seat pitch greater than 40 inches.

Some clever travelers plan their trips to avoid APD attacks by flying to the UK and flying out of European ports such as Paris.

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