Zoe Harris, chief customer officer at On the Beach, warned: “If ADP is increased, the price of flights will go up and holidays will be more expensive, that’s a fact. A further increase would be a kick in the teeth to millions of Brits whose pockets are set to be punished for going away on holiday for a week.
We’re expecting millions of Brits to try and beat the increase by booking their summer holidays in the next 48 hours.”
Chancellor Rachel Reeves is expected to take a series of tax-raising measures, predominantly aimed at business and those better off – including an increase in employers’ national insurance contributions, a rise in capital gains tax on the sale of assets, reductions in tax relief and an extension of the freeze on income tax thresholds and all this is going to have an impact one way or another on the holiday industry.
Ryanair has threatened to reduce its UK flights if air passenger duty (APD) increases, despite the airline benefiting from a recent 50% tax cut, Chief Executive Michael O’Leary has said.
O’Leary argued that higher APD would jeopardise the viability of some UK routes, potentially leading to capacity reductions. “If they raise APD again on domestic flights then there will be a cut in capacity, no question. These routes are not particularly profitable, they barely break even”, O’Leary told the Telegraph.
