Holidaymakers faced a record £4.6 billion in Air Passenger Duty (APD) during the 2025-26 financial year, according to official figures published by HMRC. This represents a nearly £500 million, or 12 percent, increase from the preceding year, attributed to hikes in the levy by the Labour government.

The first quarter of the current financial year, from April to July 2026, saw APD revenue reach £1.6 billion, an increase of £66 million compared to the same period in the previous year. This trajectory suggests Labour is on course to collect another record sum from APD this year. The tax is applied per passenger on flights.

These increases follow a 15 percent hike in APD for most fares, implemented in April following Labour's 2024 election victory. For a family of four traveling in economy class to certain destinations this summer, the tax bill exceeded £400 for the first time. Journeys to destinations like Dubai or Florida for a family of four in premium economy could incur nearly £1,000 in taxes alone due to higher rates for non-economy classes.

The figures have prompted calls for the new Chancellor, John Healey, to freeze APD in his upcoming October budget. Conservative Shadow Transport Secretary Richard Holden criticized Labour, stating they are "searching for ways to raise taxes on hardworking people." He added that the tax hikes contribute to the rising cost of living and make holidays less affordable.

Industry leaders have also voiced concerns. Willie Walsh, head of the International Air Transport Association, described APD as the highest air travel tax globally, equating to approximately 20 percent of the average basic ticket price. He argued that the UK, despite being a small part of the global air passenger market, accounts for a disproportionately large share of global aviation tax revenue, which he believes is harming the UK economy, deterring foreign investment, and impacting competitiveness, exports, and jobs.

Mark Tanzer, chief executive of ABTA, the association of travel agents and tour operators, urged the Chancellor to provide relief for families and holidaymakers by avoiding further increases to APD, noting that the UK already imposes some of the highest departure taxes worldwide.

APD rates are structured in a three-tier system based on flight distance and carbon emissions. As of April, the charge for flights up to 2,000 miles, covering most European destinations, rose from £13 to £15 per passenger in economy, and to £32 for premium economy. For journeys up to 5,500 miles, such as to Dubai or Florida, the tax increased from £88 to £102 in economy and to £244 in premium economy. Longer flights, like those to Japan or Australia, saw taxes increase from £92 to £106 in economy and £253 in premium economy.

The levy is applied to flights departing from UK airports and is typically passed on to consumers by airlines. It does not apply to children under 16 traveling in economy class. Tim Alderslade, CEO of Airlines UK, warned that further APD increases, coupled with rising fuel costs and sustainable aviation fuel mandates, could jeopardize the growth of the aviation sector and make flights less affordable.

The Treasury was contacted for comment.