Budget could see APD slashed for domestic flights

The upcoming budget could see chancellor Rishi Sunak cut or slash air passenger duty (APD) for flights within the UK.

Under current tax laws, air passenger duty is charged on all flights departing a UK airport which means domestic flights are charged on all sectors.

Currently APD is charged at £26 for standard economy tickets on flights up to 2000 miles and £180 for long haul flights. This rises to £78 and £541 for business and first class travel.

Cutting APD would be a big boost for regional airports who rely on cheaper domestic air travel.

It isn’t all good news though with APD for long haul travel expected to be significantly raised.

The rise in long haul APD is a penalty for their environmental impact according to government sources.

Environmental campaigners will see cutting domestic APD as a blow though as many campaign against air travel for short journeys despite it usually much lower in cost and quicker than a rail journey.