Air Passenger Duty (APD) Set to Increase in 2026

Alongside several budget changes from Rachel Reeves, it was announced that APD will be increasing in April 2026. As the chancellor of the exchequer, Rachel Reeves was set to announce several changes, including tax rates in different areas of the government. However, the increase in APD in both 2025 and 2026 has caused a particularly large response in the travel industry.  

What is APD? 

APD is air passenger duty. It was originally introduced by Kenneth Clarke in 1994 and has seen several increases due to the rise of inflation since.  

There are multiple rates included, depending on the circumstances, and several of these were already set to increase in April 2025 prior to the extra announcement that they will increase again in April 2026.  

APD is essentially a flight tax that is paid by airlines to HMRC. However, the price is usually added into the price of tickets for passengers. This means that with each increase, tickets get more expensive, which is almost inconsequential in some areas, but a large leap in others. 

How do APD Charges Work? 

The charge in APD will depend on the type of passenger (for example some children are exempt), the destination, and the cabin the passenger is flying in.  

It applies to domestic and international flights, with several rates in international available.  

This is split into 4 bands, the first of which being all domestic flights. This is calculated based on the distance between London and the capital city of the destination.

For international flights, APD is broken down like this: 

• Band A: distances of 0-2,000 miles, including EU and EEA countries. 
• Band B: distances of 2,001-5,500 miles, including destinations such as Egypt. 
• Band C: distances over 5,500 miles, including anywhere outside of A and B. 

Each band also has 3 rates depending on travel class, as follows: 

• Reduced Rates: for economy class seats. 
• Standard Rate: for any other class of seats. 
• Higher Rate: for plans over 20 tonnes. 

What Will the Increases Look Like? 

At present in January 2025, the rates of APD are as follows: 

• Domestic: reduced rate £7, standard rate £14, higher rate £78
• Band A: reduced rate £13, standard rate £26, higher rate £78
• Band B: reduced rate £88, standard rate £194, higher rate £581
• Band C: reduced rate £92, standard rate £202, higher rate £607 

As of April 2025, when the first changes are to be implemented, the rates will increase to the following: 

• Domestic: reduced rate £7, standard rate £14, higher rate £84 
• Band A: reduced rate £13, standard rate £28, higher rate £84 
• Band B: reduced rate £90, standard rate £216, higher rate £647 
• Band C: reduced rate £94, standard rate £224, higher rate £673 

And finally, when the most recently announced increase goes into place in April 2026, the rates will increase to the following: 

• Domestic: reduced rate £8, standard rate £16, higher rate £142
• Band A: reduced rate £15, standard rate £32, higher rate £142
• Band B: reduced rate £102, standard rate £244, higher rate £1,097
• Band C: reduced rate £106, standard rate £253, higher rate £1,141 

What Does This Mean for Me? 

As a travel business dealing with these changes, it is more important than ever to ensure your travellers are aware. Whether that means pointing them in the direction of informative articles, so they aren’t taken unawares by changes, or taking the time to explain how APD affects their tickets and ensuring they know what to do if anything goes wrong, those travellers are under your guidance.  

These changes have caused quite an uproar in the travel industry, but ultimately these changes are ones we have to adapt to and there is nothing more travel agent than being a little over prepared for a multitude of situations.  

Dealing with these constant changes alongside your clients is also a fantastic way to gain their confidence, knowing that next time they come to you, you’ll be prepared for anything.  

So, if you’re looking to up your consumer protection game and want to know how PTS could be the right fit for you, check out our page or get in touch at hellopts@protectedtrustservices.com, or by calling 0207 190 9988.