Flight prices to and from UK will rise as government prepares to raise air passenger duty

UK flight prices set to increase.

 

Long-haul flights to and from the United Kingdom are soon expected to cost more as part of the British governments overhaul of air passenger duty in next week’s budget.

 

The UK’s Chancellor of the Exchequer, Rishi Sunak, will reportedly announce that a reform of the tax will go ahead, with a higher rate levied on the longest journeys.

 

Air passenger duty (APD) is paid by carriers, however, the cost is always passed on to the customer.

 

APD is currently charged in two bands, to destinations under 2,000 miles and above 2,000 miles.

 

According to current fares, a non-stop roundtrip American Airlines flights from New York to London will consist of $113.20 in “United Kingdom Air Passenger Duty,” with business class passengers often paying more than double.

 

Despite the expected rise in duty, environmentalists are likely to reject the reform as too modest.

 

Instead, they call for a frequent flyer levy that would see regular air travellers pay more for each additional flight they take in a year – research shows that 15% of people take 70% of flights.

 

The chancellor has also made clear in recent weeks that he is concerned about the increasing risk of inflation, which the Bank of England has warned could top 5% in the coming months.

 

Bitcoin, which is often seen as a hedge against inflation, rose to its all time high last week, topping $66,000.