EasyJet, TUI, Ryanair and Jet2 passengers face new tax on holidays from Rachel Reeves

UK holidaymakers will have to fork out more cash to go on holiday abroad thanks to a new tax hike.

Chancellor Rachel Reeves on Wednesday confirmed a rise to Air Passenger Duty (APD) which is a tax that applies to airlines and passengers departing from a UK airport.

The rates are based on the length of flights and the class of travel, and they are due to increase from April 1, 2026.

In the UK, it applies to passengers aged 16 or over travelling on both domestic and international flights and is added to the price of the airline ticket. Airlines then pass the fee to the government.

It means that passengers travelling from a UK airport with EasyJet, TUI, Ryanair, Jet2 and other major airlines face more expensive ticket prices when the new rates take effect.

Reeves confirmed that the APD increase will add up to £2 to the cost of an economy ticket for a short-haul flight, while private jet users will be subject to a 50% hike in APD.

Currently, for passengers travelling in economy, ADP charges are £7 for a domestic flight, £13 for a short-haul flight, and £88-£92 for a long-haul flight.But from 2026/27, the rates will rise by £1 for domestic flights, £2 for short-haul flights and £12 for long-haul flights. 

As such, under the new rates passengers will pay £8 for a domestic flight, £15 for short-haul flights, such as those to Spain, France and Turkey, and £100-£104 for long-haul flights.

Private jet passengers currently face an APD rate of £78 for domestic or short-haul flights, and £581-£607 for long-haul flights, and this is set to increase by 50% in the 2026/27 financial year.

Reeves told the Commons: “Air passenger duty has not kept up with inflation in recent years so we are introducing an adjustment, meaning an increase of no more than £2 for an economy class short-haul flight.

“But I am taking a different approach when it comes to private jets, increasing the rate of air passenger duty by a further 50%. That is equivalent to £450 per passenger for a private jet to, say, California.”

Here is a full breakdown of the new APD rates from April 1, 2026 for flights in each band:

Domestic band

Band A (flights from 0 to 2,000 miles)

• Reduced rate - £15

• Standard rate - £32

• Higher rate - £142

Band B (flights from 2,001 to 5,500 miles)

• Reduced rate - £102

• Standard rate - £244

• Higher rate - £1,097

Band C (flights more than 5,500 miles)

• Reduced rate - £106

• Standard rate - £253

• Higher rate - £1,141

A Treasury document states that the increases will “help correct for below-inflation uprating in recent years”.