Air passenger duty increases by 8%
Air passenger duty (APD) has increased by 8% since last year’s Autumn Statement.
This will hit the pockets of budget holidaymakers hard as they bare the brunt of high travel costs.
For short haul flights, the tax has increased from £12 to £13 and for long haul flights of over 4,000 miles; this has shot up from £85 to £92.
A joint statement from the heads of easyJet, British Airways owner IAG, Ryanair and Virgin Atlantic claim that the hike would “hit millions of hard working families and damage the wider economy.”
The Association of British Travel Agents (ABTA) expressed its disappointment that the government enforced an 8% double inflation rise in APD rates from 1 April 2012.
Mark Tanzer, ABTA Chief Executive said: “The Chancellor’s confirmation that he intends to go ahead with double inflationary rise in APD on 1 April, together with a further increase in 2013, is incredibly disappointing. The Government has repeatedly said it looks to travel and tourism as one of its key drivers of growth but instead of listening to concerns that APD is stunting this growth, not only in travel but in the wider economy too, it has chosen to significantly increase the tax burden.”
This is just another blow to low-income consumers who will have to fork out even more cash to cover the cost of air travel.
This comes at a time when millions of holidaymakers will be heading on an Easter break and already struggling to cope with rising living standards.
Anyone looking to go on holiday this year, and effectively manage their budget at the same time, might want to consider taking out a prepaid credit card.
The orange prepaid credit card could be beneficial to travellers as it’s not connected to an overdraft and you top up the card meaning you can’t spend anymore than you have.