According to major media reports, APD is a tax paid by airline operators to HM Revenue and Customs (HMRC) for passengers aged 16 or over travelling on both domestic and international flights. APD rates vary depending on the length of flights and the class of travel. While the tax is paid by airline operators, ticket prices usually include a charge to cover this cost and airlines then pass the fee to HMRC.
Any hike to APD typically means more expensive air fares for UK passengers. HMRC has confirmed the new APD rates from April 1, 2026, to March 31, 2027. APD rates vary from £8 up to £1,141 per person depending on destination and class.
Economy passengers pay a lower APD rate, with business and first class passengers incurring higher charges. The flight taxes are divided into four bands. Domestic flight charges for economy class are rising from £14 to £16 from April 2026.
Band A covers flights from zero to 2,000 miles, which includes all of Europe and the majority of North Africa. Economy passengers travelling to Band A destinations will be charged £28 from April 1, 2026, an increase of £4 from the current £24 fee. Band B covers flights between 2,001 to 5,500 miles, including destinations such as the USA, Canada, United Arab Emirates, and India.
Band C applies to destinations over 5,500 miles from the UK, such as Australia, New Zealand, Mexico, and Thailand. 6 billion this year. APD was first introduced in 1994 to offset the environmental impact of air travel.
It remains unknown which specific airlines will pass on the full APD increase to ticket prices. Additionally, how the APD increase will affect travel demand to different destinations has not been determined. The exact breakdown of APD revenue allocation by the government is also unclear.