The recent Budget announcement has been bad news for just about everyone, including fans of budget flights. Amongst a plethora of new tax rises there is an increase of Air Passenger Duty (APD) by £2 per ticket in April 2026.
This doesn’t sound a lot, but it means that APD will increase to £15 for short-haul flights. The era of £14.99 budget flights is (almost certainly) over.
Top tip: You can lessen the Tax Man’s blow using our Complete Guide to Earning Cashback on Ryanair Flights
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But it’s not just prices rises…
By raising APD, the Government was clearly hoping that budget flyers would simply stump up the additional cash. But they did not apparently consider how the industry would react.
As if proof was needed, Ryanair’s outspoken CEO Michael O’Leary has already announced that his airline will cut 10% of budget flights from the UK next year. He said:
“This short-sighted tax grab… will make the UK a less competitive destination compared to Ireland, Sweden, Hungary and Italy where these Governments are abolishing travel taxes to stimulate traffic, tourism, and jobs growth in their economies.”
Ryanair has form when it comes to reducing flights. The airline has recently implemented a cut at Berlin Brandenburg airport following a similarly short-sighted government decision.
What were they thinking?
According to Ryanair, a 10% reduction in capacity equates to 5 million fewer budget flights. Instead of helping to raise tax take, the Government stands to lose £65 million next year. This loss will increase to £75 million in 2026 when the new APD rate comes into force.
It remains to be seen whether other airlines follow Ryanair’s lead. Budget flyers across the UK must be hoping they won’t. As must the Treasury who have obviously not considered Ryanair’s decision in their calculations.
For a proudly Europhile group that claims they want to bring the UK closer to Europe, this is madness. The government has not only badly misjudged their tax receipts, but also helped to make it harder for Brits to travel to the mainland (and vice versa).
Genius.
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