UK holidaymakers heading to popular destinations such as Spain, Portugal, and Greece are now subject to increased Air Passenger Duty (APD) charges following a rule change implemented in April 2026 under the Labour Party government. The levy has risen by up to 15 per cent per person, with further increases scheduled for April 2027.
APD Increase Details
The Office for Budget Responsibility (OBR) predicts that the latest rise will generate £5.2 billion for the exchequer by 2027, up from £4.6 billion this year. By the end of March 2028, the tax is expected to bring in £5.6 billion.
Band A Destinations
Band A covers flights of 0 to 2,000 miles, encompassing all of Europe and most of North Africa, including holiday hotspots like Spain, Portugal, and Greece. For economy passengers travelling to these destinations, the reduced rate has increased from £13 to £15. Those flying in business, first, or premium economy classes will see rates jump from £28 to £32.
Old vs New APD Rates
Old APD rates (until April 2026):
- Reduced rate (economy): Domestic £7, Band A £13, Band B £90, Band C £94
- Standard rate (first, business, premium economy): Domestic £14, Band A £28, Band B £216, Band C £224
New APD rates (from 1 April 2026):
- Reduced rate (economy): Domestic £8, Band A £15, Band B £102, Band C £105
- Standard rate (first, business, premium economy): Domestic £16, Band A £32, Band B £244, Band C £253
Expert Commentary
Dale Robinson of travel insurance specialists Just Travel Cover explained: "Essentially, this increase means that from April 1st, air travel is about to get more expensive for most people flying to and from the UK." He provided an example: "Four adults travelling by air from the UK to New York this Easter, in premium economy, will pay £1950 between them in Air Passenger Duty. If they were flying in March of this year, the charge would have been £1730." Robinson added: "The same passengers travelling on the same service in April 2027 will pay £2015 in APD, demonstrating the planned rise in the levy in the years to come."
