Air Passenger Duty (APD)

What is the Air Passenger Duty (APD)?
APD is a government excise duty, and is payable to the Treasury by UK airlines. However, this tax is only charged once a flight has taken off, and therefore, if passengers do not use their flight, they are entitled to claim the APD back. The cost of APD is set to rise by £1 to £11 on short-haul economy flights, and to £45 on long-haul economy flights to the US, £50 to the Caribbean and £55 to Singapore. There will also be increases for other classes of ticket.

APD is expected to raise £1.8 billion in 2009-10, according to the 2009 Budget statement. It is forecast to raise £2.2 billion in 2010-11, rising to £3.3 billion in 2013-14. More information here. The £10 billion notional benefit figure is also likely to rise, as a result of increased fuel duty and rising economic activity.

The UK Government will introduce the Air Passenger Duties in two phases in November 2009 and November 2010. There will be four bands, based on distance of capital cities from London. Passengers in premium seats (premium economy, business and first) will pay the higher sum.

Band A (0 - 2000 miles from London)
Includes: Europe, Algeria, Greenland, Libya, Morocco, Tunisia

  Economy cabins Premium cabins
Currently £10 £20
November 2009 £11 £22
November 2010 £12 £24

Band B (2001-4000 miles)
Includes: Bermuda, Canada, Egypt, Gambia, Jordan, Oman, Russia (east of Urals), Syria, UAE, US

  Economy cabins Premium cabins
Currently £40 £80
November 2009 £45 £90
November 2010 £60 £120

Band C (4001-6000 miles)
Includes: Botswana, Brazil, Caribbean, China, India, Japan, Kenya, Maldives, Mauritius, Mexico, Seychelles, South Africa, Sri Lanka, Thailand

  Economy cabins Premium cabins
Currently £40 £80
November 2009 £50 £100
November 2010 £75 £150

Band D (more than 6000 miles)
Includes: Argentina, Australia, Chile, Fiji, Indonesia, Malaysia, Peru, Singapore

  Economy cabins Premium cabins
Currently £40 £80
November 2009 £55 £110
November 2010 £85 £170

The figures below show that 25% more tax will be paid travelling to Bridgetown, than will be paid flying to Honolulu, even though Bridgetown is 3,000 miles closer to London.

APD charges

Bridgetown London (Bridgetown = 4,210 miles = 25% higher charge)

Honolulu London (Honolulu = 7,230 miles = 72% further)
  Economy Premium Economy Premium
Currently £40 £80 £40 £80
November 2009 £50 £100 £45 £90
November 2010 £75 £150 £60 £120

Executive Traveller 2003