Labour has been urged to ease the burden on holidaymakers by cutting Air Passenger Duty in this month’s Budget, with airline chiefs warning that flying taxes have become excessive.
The leaders of easyJet, British Airways and Ryanair have joined forces to call on Andy Burnham and his Chancellor to reduce the levy, widely known as the “holiday tax”.
The airline executives said taxes on family holidays were already at historic highs. They warned that the Prime Minister’s promise to deliver “good growth in every postcode” would be difficult to achieve if Air Passenger Duty was raised again to help fund Labour’s welfare spending.
They also cautioned that further increases could push overseas breaks beyond the reach of some families, while criticising plans for a new tourist charge on domestic hotel stays as “loony”.
The intervention follows a report in the Mail last month revealing that the Treasury is collecting record sums from aviation taxes after Air Passenger Duty was increased by 15 per cent in the 2024 Budget.
Fears are now mounting that Mr Burnham’s Chancellor, John Healey, could target holidaymakers once more when he unveils his first Budget on October 28.
Speaking at a meeting of senior aviation executives in Brussels, Ryanair chief Michael O’Leary said he had written to Mr Burnham. He described the administration as a “typical Labour f***ing tax and spend government”.
Ryanair chief Michael O’Leary accused Andy Burnham’s administration of being a “typical Labour f***ing tax and spend government”
There are mounting concerns that Andy Burnham’s Chancellor, John Healey (left), could raise taxes on holidaymakers again in his first Budget on October 28
Labour first increased the holiday tax in the 2024 Budget, when former Chancellor Rachel Reeves raised Air Passenger Duty by 15 per cent
Mr O’Leary said: “You cannot create growth in every part of the UK while making air travel more heavily taxed.
“More absurdly, the Government is considering a double charge for visitors by allowing local mayors to impose an overnight tax on hotels and other accommodation.
“This is a typical Labour f***ing tax and spend government.
“If it repeats the failed economic approach taken by Germany, Austria and France by taxing air travel to the hilt, it will face the same economic stagnation those countries are experiencing.
“If the Government is serious about growth across every postcode, it should abolish Air Passenger Duty and drop plans allowing local mayors to impose what amounts to double taxation on overnight visitors.”
Kenton Jarvis, easyJet’s chief executive, said the Government’s focus on the cost-of-living crisis should include ensuring that working families can still afford a holiday.
“Flying must remain affordable and accessible,” he said. “Air Passenger Duty already rose in April, making travel more expensive. Unless the charge is frozen, those additional costs will have to be passed on to passengers.”
He added: “The UK already has the highest levels of Air Passenger Duty. A further increase would be difficult to justify. At the very least, it should be frozen, although a reduction would be preferable.”
Luis Gallego, chief executive of International Airlines Group, the parent company of British Airways, also supported a significant cut to the levy.
HMRC figures show that passengers paid a record £4.6billion in Air Passenger Duty during 2025-26. That represented an increase of almost £500million, or 12 per cent, compared with the previous year.
After Labour’s APD hike, which came into force in April this year, families of four travelling in economy class this summer to some destinations faced tax bills on getaways of more than £400 for the first time
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EasyJet boss Kenton Jarvis said ‘I don’t think you can seriously increase’ APD further and that ‘it needs to be frozen and ideally a reduction’
Luis Gallego, CEO of International Airlines Group, which owns BA, also backed slashing the APD levy
Meanwhile, in the first quarter of this financial year (2026-27), a record £1.6billion was raked in from the levy.
It comes after former chancellor Rachel Reeves raised APD by an inflation-busting 15 per cent for most fares in her first Budget after Labour won the 2024 election.
It kicked in from April this year and meant families of four travelling in economy class this summer to some destinations faced tax bills of more than £400 for the first time.
And the same families travelling to destinations such as Dubai or Florida saw the levy hit nearly £1,000, if travelling in premium economy, as APD rates are higher for non-economy classes.
In 2016-17, the Government collected just £3billion in APD.
APD rates are charged according to a three-tier scheme based on the distance being flown.
At present, it is £15 per passenger for those flying abroad up to 2,000 miles, which is most European destinations. For premium economy, it is £32 per passenger.
For journeys up to 5,500 miles – such as Dubai, India or Florida – it is £102 or £244 for premium economy.
For even longer flights, such as to Japan or Australia, it is £106 or £253 for premium economy.
The levy is charged on flights taking off from a UK airport, meaning it is paid on outbound journeys but not inbound.
It is not charged for children under 16 if they’re travelling economy class.
The tax is charged to carriers but almost always passed onto fliers, meaning fares increase when it is raised.
Hospitality bosses have already warned that new powers which ministers are set to hand to regional mayors to introduce a levy on hotel stays could put jobs at risk.
The uncapped levy, dubbed a ‘tourist tax’, will see visitors staying in cities charged a fee on top of the cost of their stay.
While Labour mayors in ten city regions have said they will voluntarily cap it at 5 per cent, Reform UK’s two regional mayors and the two Conservative ones have said they won’t use the powers.
It comes amid an inquiry by MPs on the Commons culture committee, who are probing whether current government policies are supporting growth and international competitiveness in the tourism sector.
It will quiz sector bosses and experts from next week and report back later this year or early 2027 on whether the government’s target for increasing visitor numbers from 42.5 million in 2024 to 50 million by 2030 is realistic.
The Treasury was contacted for comment.
