According to Airlines UK chief executive Tim Aldersdale, “we need a revised and joined-up approach to the UK’s strategically vital aviation sector”.
His comment followed the UK Labour government’s first Budget Statement in late Oct-2024.
The most obvious aviation measure in the UK Budget is a hike in Air Passenger Duty (APD), criticised by Ryanair’s Michael O’Leary as a “short-sighted tax grab”.
Ryanair plans to cut UK capacity by up to 10%, potentially removing 5 million passengers annually from Europe’s biggest aviation market.
The UK Budget also included further support for SAF development and GBP975 million of additional research and development funds for aerospace over five years. Aviation bodies welcomed these measures, but they are relatively minor, and the focus was on APD.
Although the increases might have been much greater, UK passenger charges are already high compared with other large European markets. Airlines are concerned that APD is seen as a form of demand management, while taking money away from aviation when it needs to fund net zero.
