Manchester airport flights are set to experience a price rise, following the Chancellor's budget announcement of a surge in air traveller duty to assist fund larger reductions to National Insurance.
Higher Taxes on Flight Seats in Manchester Raise Industry Concerns
Beginning in April 2025, premium seats like business and first class will cost more, which the Chancellor claimed would more accurately represent the elevated level of inflation in the United Kingdom. The already expensive seats will cost more, consequently, nevertheless, short and domestic-haul flight will less likely be impacted by the tax surge.
Each year, the integrality of the flights leaving from the United Kingdom are subjected to pay an air passenger duty tax that tends to vary according to the kind of seats and the total length of the journey, raising around £3.8 billion for the Treasury.
During the Spring Budget, Chancellor Jeremy Hunt emphasized that this was considered a one-off rise, only impacting “non-economy flights, only to account for high inflation in recent years.”
This tax increase on the aviation sector is in contradiction to Prime Minister Rishi Sunak's September commitment to refrain from imposing any further levies on aviation.
Since aviation taxes and airport charges are already among the highest in the world, Tim Alderslade, chief executive of industry group Airlines UK, predicted that this would leave British airports "even less competitive on the global stage".
Changes and Increased Costs Across Flight Categories
There are four categories for air passenger duty: domestic flights and Band A-C flights. Any flight from London that is 2000 miles or fewer is included in Band A. All flights from 2001 to 5,500 miles are included in Band B. Any trip above 5,500 miles, including those with connections, is included in Band C.
Price hikes were already scheduled for the economy seats in each of these flights in April, when the domestic tax for flights increased from £1 to £14, and the long-haul tax from £202 to £204. However, more increases will result from this budget modification.
Passengers flying premium seating on domestic flights will experience an increase in duties starting April 1, 2025, rising from £26 to £28. Mid-range flights will see a similar duty hike from £194 to £216. For the longest flights, the duty will also increase by the same amount.