EasyJet plans to cut some domestic flights in England and Scotland due to the country’s increase in air passenger duty (APD), which is expected to reduce demand, as per incoming CEO Kenton Jarvis.
The airline reported a 34pc increase in full-year 2024 profit before tax but warned of a negative impact from new taxes in England and France.
The APD increase will add £2 per fare on short-haul flights in 2025, with a further rise planned for 2026, potentially leading to higher air fares for travelers.
Ryanair also announced it would cut 10pc of English and Scottish flights in response to the APD increase, highlighting the broader industry impact.
A written statement from the Westminster government said: “APD is a tax on airlines and aircraft operators. The government’s understanding is that airlines and aircraft operators ordinarily pass the cost of APD through to the consumer in prices, although this is a commercial decision for the airline or operator. This measure may therefore impact individuals who travel by air, who may see an increase in air fares. Those individuals who travel in a non-economy class and by larger, more luxurious private jets may see a bigger increase.”
