Britain is facing an announcement that, for the fourth time in just five years, Air Passenger Duty will be increased. Many in the airline industry are concerned that the hike will hit those who have already booked their seats on future flights. If the announcement in the Chancellor’s Autumn Statement is as predicted, the new level of APD will be introduced on 1 April 2011.
This increase will be added onto all flights after that date, meaning that those who have thought about their travel plans well ahead of time will still be required to pay the controversial tax.
Virgin Atlantic has said that it already has thousands of advanced bookings, and if the other airlines are taken into account this amounts to some 6.5 million seats already bought for after 1 April next year. APD will have to be tacked onto the price of every one of these tickets.
If the government manages to put its proposals through, Virgin said that the £2 billion raised because of the tax in 2010 would increase to £3 billion. It is expected that an average of 10 per cent will be added to the price of airline tickets after the Chancellor makes his announcement. However, some prices could go up by a third.
Hoteliers, tour companies and restaurateurs are predicting that APD will cause bookings next year to fall by around five per cent. The November 2010 APD increase saw some flights shoot up in price by well over 50 per cent.

