The UK government’s recent Budget announced future increases to Air Passenger Duty (APD) starting from April 2027, along with no new financial measures to support pilot training, which industry bodies consider a missed opportunity. The announcement has elicited mixed responses from aviation industry groups, highlighting concerns over increased costs and long-term sector sustainability.
Under the new plans, APD will rise in line with inflation, affecting short-haul, long-haul, and private jets over 5.7 tonnes. Transport Secretary Rachel Reeves stated that extending the higher rate ensures a fair contribution from private flying. This increase is expected to raise ticket prices, particularly for premium and long-haul journeys, which could impact passenger demand and airline revenue.
Industry reactions express concerns over economic implications
Clive Wratten of the Business Travel Association warned that the increase could undermine business travel growth, citing over £4.1 billion collected from APD in 2024-2025 and emphasizing that the tax hampers global connectivity. Dan Owens, CEO at Belfast International Airport, voiced fears that the rise could reduce the island’s attractiveness to airlines, potentially limiting new route development and regional connectivity.
No measures for pilot training affordability
Despite ongoing challenges with the high costs of becoming a commercial pilot—exceeding £100,000—no new support schemes or financial aid were introduced in the Budget. The British Airline Pilots’ Association (BALPA) criticized the government for neglecting the industry’s pilot supply concerns, emphasizing that increased training costs without assistance threaten the pipeline of qualified pilots necessary for future growth, especially with expansion projects like Heathrow’s third runway.
Reeves reaffirmed government commitments for infrastructure projects, including the third runway at Heathrow, which is planned to be privately financed. Additionally, progress on Gatwick’s second runway was mentioned, with the government emphasizing infrastructure development aimed at boosting capacity and economic growth.
While travel and tourism sectors acknowledge the potential short-term pressures from increased taxes, they remain cautiously optimistic about infrastructure investments and future growth prospects. Overall, the Budget underscores a focus on capacity expansion and infrastructure, but industry representatives express concern over the sector’s financial sustainability and skills pipeline going forward.
