Airline chiefs urge Labour to scrap planned passenger duty rise before Budget
Airline chief executives have publicly urged the Labour government to abandon plans to increase Air Passenger Duty (APD) ahead of the Budget on 28 October. The bosses of Ryanair, easyJet and British Airways warned that further tax hikes on flying would undermine growth and price families out of holidays, contradicting the government's stated commitment to economic expansion across all regions.
APD was raised by 15 per cent in Labour's 2024 Budget and has since generated record revenues: £4.6billion in 2025-26 (a 12 per cent increase year-on-year) and £1.6billion in the first three months of 2026-27. Ryanair boss Michael O'Leary, speaking at a Brussels roundtable, criticised what he called a 'typical Labour tax and spend government', whilst the airline leaders also opposed emerging plans to introduce new tourist taxes on domestic hotel stays, which they described as 'loony' double taxation.
- Airline chiefs urge Labour to freeze Air Passenger Duty before October Budget.
- APD was raised 15% in 2024; now generates record £4.6billion annual revenue.
- Airlines warn higher taxes will price families out of affordable holidays.
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Air Passenger Duty is a tax on passengers leaving UK airports. The government has raised it in recent years, and the tax has been generating record revenues for the Treasury.
The Labour government has said one of its main aims is to grow the economy and create opportunities across the UK. Travel and tourism are important to this economic strategy.
Higher taxes on flying make holidays and trips more expensive for families and businesses. Airlines and other industry figures argue this can work against economic growth objectives, creating a tension between the government's desire to raise tax revenues and its goal of keeping costs down to support economic expansion.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Airline executives argue that further APD increases are economically counterproductive and socially regressive, disproportionately affecting working and middle-class families and pricing them out of holidays. They contend that record revenues of £4.6 billion already demonstrate the tax's sufficiency, and additional hikes contradict the government's stated commitment to growth across all regions, particularly undermining development at regional airports seeking to boost connectivity and economic opportunity.
The case against
Defenders of the current or higher APD would argue that aviation generates genuine environmental costs through carbon emissions that taxation appropriately internalises, potentially encouraging more sustainable transport choices. They would contend that government faces real fiscal pressures in funding public services, and a modest tax on discretionary leisure travel represents a reasonable contribution from those with disposable income, particularly noting that budget carriers continue to operate successfully and profitably.
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Originally published by Daily Mail as “Labour urged to ‘stop taxing the s*** out of’ holidaymakers and cut flying taxes in the Budget by Ryanair boss and other airline CEOs who also take aim at Andy Burnham’s ‘Labour f***ing tax and spend government’ and ‘loony’ levy on hotel stays”.