British Airways owner International Consolidated Airlines Group (LSE:IAG) and long-haul peers were hit with a new tax, though airports like Heathrow will benefit from extended support.

Air passenger duty was cut on domestic flights, but a new tax rate will be levied on long-haul flights.

Chancellor Sunak said those that are taxed will be ultra-long-haul flights over 5,500 miles, with an economy rate of GBP91, meaning “those who fly furthest will pay the most”.

Less than 5% of passengers will pay more, he says, with the change coming in from April 2023

The cut to domestic air passenger duty tax comes on the eve of Cop26 climate change summit, though flights for Sunak and his colleagues up to Glasgow will not be affected as the changes will not be introduced until 2023.

“This will help cut the cost of living, it will bring people together and…is a boost to regional airports,” Sunak said.

He also extended current pandemic support measures for airports for another six months.

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