Air Passenger Duty: Why a UK Departure Costs More Than It Looks
Every passenger departing a UK airport pays Air Passenger Duty, and the amount depends on the destination band and the cabin. The duty is included in the fare, so the traveller rarely sees it, and it is one of the reasons a premium ticket from London costs more than the cabin difference suggests.
Air Passenger Duty: Why a UK Departure Costs More Than It Looks: questions people actually ask
Is Air Passenger Duty included in the ticket price?
Yes. The airline collects it and includes it in the fare, so the traveller usually does not see it as a separate line.
Does the cabin affect the duty?
Yes. There is a reduced rate for the lowest class, a standard rate for other seats and a higher rate for private jets. A premium seat can carry a much higher duty.
Can I avoid the duty by connecting abroad?
Only by starting the journey outside the UK. A connection through the UK on a journey that starts abroad may still attract the duty, depending on the ticket and the journey.
The bands
The duty is set by destination band, which is based on the distance from London to the capital of the destination country. Short-haul destinations are in a lower band, and long-haul destinations are in a higher band.
The band applies to the journey, not to the aircraft or the route. A flight to a long-haul destination via a short-haul hub is charged at the long-haul band for the final destination, and the rules on connected journeys are specific.
The cabin
The duty has a reduced rate for the lowest class of travel, a standard rate for other economy seats and a higher rate for private jets. The definition of the lowest class is not the same as the cheapest fare, and a premium economy seat may be charged at the standard rate.
The cabin rate is one reason a business class ticket from the UK costs more than the seat and the service. The duty on a premium seat can be several times the duty on an economy seat.
Who pays
The airline collects the duty and passes it to the government. It is included in the fare, and it is not separately reclaimable by the passenger. A business that buys a ticket for an employee bears the duty as part of the cost.
Some passengers are exempt, including children under a certain age in the lowest class and passengers on connected journeys who meet the conditions. The exemptions are specific, and the airline applies them at the time of booking.
The connection question
A traveller who starts in the UK and connects through a hub abroad pays the UK duty on the departure. A traveller who starts abroad and connects through the UK may pay the duty on the UK leg, depending on the journey and the ticket.
The rules on connected journeys are designed to avoid double charging, and they are complex. A traveller comparing a UK departure with a departure from a nearby European city should include the duty and the cost of getting to the other airport.
Why it matters for fare comparisons
A fare from London and a fare from Paris for the same long-haul destination are not directly comparable, because the London fare includes the duty and the Paris fare does not. The difference can be a significant part of the fare, particularly in premium cabins.
The duty also affects the choice of cabin. A premium economy seat may be charged at a higher rate than economy, and the difference can make an upgrade more expensive than the seat suggests. Check the total price rather than the fare component.