EasyJet slashes domestic flights as air passenger duty rises

In the United Kingdom, EasyJet has decided to cut its domestic flight schedule significantly following a rise in air passenger duty imposed by the government. Specifically, the increase, introduced by Chancellor Rachel Reeves, will raise the standard rate of air passenger duty (APD) by £2 to £16 or £32 for a return journey between two airports within the UK. EasyJet's incoming CEO, Kenton Jarvis, expressed disappointment over this rise, arguing it contradicts the government's supposed pro-growth agenda. He asserted that taxing air travel, which is crucial for mobility and economic movement, is counterproductive, especially considering the island nature of the UK. The cuts are expected to particularly affect routes connecting London and regions like Scotland and Northern Ireland. Additionally, Ryanair, another major player in the aviation market, announced a reduction of its UK capacity by 10% due to similar concerns over increasing operational costs stemming from the rise in APD. This growing trend of tax increases on air travel has sparked criticism from industry leaders, who claim it will drive up prices and render the UK less competitive as a travel destination. These changes will take effect from the 2026/27 financial year, impacting not only short-haul flights but also levying increases on long-haul economy passengers traveling to popular destinations like the Caribbean and the Far East, with private jets facing even steeper increases. The origins of air passenger duty trace back to its introduction by Ken Clarke in 1994, and while it has been adjusted over the years, other countries like Ireland and Sweden have abolished similar taxes in efforts to enhance their competitiveness in tourism and job creation. This situation presents a significant challenge for budget airlines like EasyJet and their consumers, as families will face increased travel costs amidst these fiscal changes.