Shortage of air passengers could push flight taxes up 25%

Updated: 

Shortage of air passengers could push flight taxes up 25%PA


A shortage of passengers could see the price of plane tickets rising by 25% to keep up with Government forecasts.

This shortage of people flying could leave the Treasury with a financial back hole of 50 million, which will have to be paid by fewer people as less Brits can afford to fly abroad.

A Telegraph report says it is looking to raise £3.6 billion from Air Passenger Duty in 2015-16, compared with £2.2 billion in the current financial year, meaning the tax will have to be pushed up to just over 24% for the Treasury to meet its target.

The news is a further blow to families who are already feeling economically pressured, particularly as British airline passengers already face the highest flight taxes in the world.

According to the Department for Transport passenger numbers are down due to the economic crisis, while sky-high taxes have already put people off flying.

A 25% increase would mean a family of four would have to find an extra £57.50 on a trip to New York.

And, although the Government ditched the annual inflation-linked APD rise last year, it is unlikely to do so again, despite the fact that duties on air travel in other countries like Ireland and Holland have been scrapped or reduced.

For more information, visit telegraph.co.uk

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