New £15 charge set to hit Ryanair, TUI, Jet2, Easyjet passengers after Budget

New £15 charge set to hit Ryanair, TUI, Jet2, Easyjet passengers after Budget

by · Birmingham Live

EasyJet, TUI, Ryanair and Jet2 passengers face a new tax on holidays. Chancellor of the Exchequer, Rachel Reeves announced the rise in flight tax on Wednesday (30 October) in the latest hit to holidaymakers and tourists heading to the European Union.

APD rates, the tax that passengers aged 16 and over must pay when flying from most UK airports, increase each year with the forecast Retail Price Index (RPI) and are adjusted in line with inflation. The Labour Party Chancellor said that APD had “not kept up with inflation in recent years”.

Raised rates announced in yesterday’s Budget – £15 for short-haul international flights – will come into effect from 1 April 2026. The government said its understanding is that “airlines and aircraft operators ordinarily pass the cost of APD through to the consumer in prices” but added this is a “commercial decision for the airline or operator”.

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It said: “This measure may therefore impact individuals who travel by air, who may see an increase in airfares.” Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said: “Air Passenger Duty [...] already makes the UK less competitive and further increases in addition to rises in other business levies will impact growth, directly hitting the pockets of ordinary travellers and making it harder for UK airlines to put on new routes.

“We need a revised and joined-up approach to the UK’s strategically vital aviation sector.” It comes after Ryanair has warned passengers that hundreds of UK flights could be cancelled next summer due to a global shortage of new aircraft caused by Boeing production delays.

On Wednesday, Michael O’Leary, CEO of the Irish airline, expressed “short-term” frustration that “we won’t get all 30 aircraft”. He warned that this would result in “slowing down growth for summer 2025,” at an industry conference in Brussels.