Airfares set to lift as a result of tax hikes
The combined impact of rising fuel prices, European eco taxes and the hike in the UK air passenger duty is expected to see a significant rise in air fares between Australasia and the Europe this year.
The UK government has confirmed the Air Passenger Duty (APD) will rise to 8% from April 1 as previously announced, despite strong lobbying from airlines, airports and the tourist industry to cancel the tax
“At a time when the government talks about creating jobs and growth, its blinkered insistence on further increases in Air Passenger Duty achieves precisely the opposite,” IAG and British Airways CEO Willie Walsh, easyJet CEO Carolyn McCall, Ryanair CEO Michael O’Leary and Virgin Atlantic CEO Steve Ridgway said in a joint statement.
The UK APD is one of the highest air travel taxes in the world.
It is calculated on a four-band structure and varies from £13 (US$20.63) for an economy-class ticket in Europe to £92 for a ticket to a Band D destination (over 6,000 miles).
The amounts are doubled for a ticket in premium economy, business or first class.
Ian Jarrett
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