UK Air Passenger Duty Increasing, Premium Cabins Hit Hardest

The United Kingdom has what’s known as the Air Passenger Duty (APD), which is the highest passenger tax on air travel anywhere in the world (this is in addition to the carrier imposed surcharges that airlines like British Airways are known for).

We tend to see annual adjustments to this, typically around April, to reflect inflation. We’ve already known that the UK APD would be increasing as of April 1, 2025. We’ve now learned the details of the UK APD increase that goes into effect as of April 1, 2026, which will make tickets (especially in premium cabins) even more costly. Let’s go over the details.

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New UK APD rates as of April 1, 2025

As of April 1, 2025, the United Kingdom will be increasing the Air Passenger Duty for many types of tickets:

• The domestic economy APD will remain £7
• The domestic premium APD will increase by £2, from £14 to £16
• The short haul economy APD will remain £13
• The short haul premium APD will increase by £2, from £26 to £28
• The long haul economy APD will increase by £2, from £88 to £90
• The long haul premium APD will increase by £22, from £194 to £216
• The ultra long haul economy APD will increase by £2, £92 to £94
• The ultra long haul premium APD will increase by £22, from £202 to £224

As you can see, the increases to the APD for long haul and ultra long haul itineraries are pretty significant. This is described as a one-off adjustment for non-economy passengers, to account for high inflation in recent years, and to maintain the value of the APD in real terms. A few things to note:

• The premium APD applies for tickets in premium economy, business class, and first class
• For these purposes, long haul is defined as a journey of 2,001-5,500 miles, while ultra long haul is defined as a journey of 5,501+ miles
• The domestic and short haul APD won’t be adjusted in economy for 2025
• This is only one tax that applies on flights out of the UK, as there are plenty of other airport and customs taxes

UK APD increasing further in 2026

Not only is the UK Air Passenger Duty increasing in 2025, but we’ve already learned the details of a new APD price hike as of April 1, 2026. This will apply across the board, and the increases will be as follows, in comparison to the 2025 rates (which will already be higher than they are now):

• The domestic economy APD will increase by £1, from £7 to £8
• The domestic premium APD will remain £16
• The short haul economy APD will increase by £2, from £13 to £15
• The short haul premium APD will increase by £4, from £28 to £32
• The long haul economy APD will increase by £12, from £90 to £102
• The long haul premium APD will increase by £28, from £216 to £244
• The ultra long haul economy APD will increase by £14, £92 to £106
• The ultra long haul premium APD will increase by £29, from £224 to £253

As you can tell, most of the increases are mild, except in premium cabins on long haul flights. A tax of over £250 just for the privilege of getting on a long haul flight in a premium cabin is a pretty massive tax.

Which passengers have to pay the UK APD?

The UK Air Passenger Duty applies to any ticket originating in the UK — this means that if you’re simply transiting the UK on one ticket then you shouldn’t be on the hook for this.

Rather it’s charged based on having a journey originating in the UK (even if it’s the return portion of a ticket), regardless of where you’re connecting.

As you might expect, the UK APD is controversial:

• It’s a tax against those in the UK, rather than those who simply connect in the UK, as the latter group doesn’t have to pay this
• High taxes negatively impact demand for air travel, since it makes flying more expensive; this tax is bad for consumers and is also bad for airlines, as it lowers their margins

Bottom line

The UK Air Passenger Duty will be increasing again in the coming years, and we have all the details. As of April 1, 2025, we’re seeing a material increase to the APD for longer flights in premium cabins, which is described as a one-off adjustment to account for inflation. Then in 2026 we’re going to see yet another adjustment, and once again, premium cabins are hit hardest.

What do you make of the UK’s upcoming APD hikes?