Latest news with #AirPassengerDuty
The Herald Scotland
12 hours ago
- Business
- The Herald Scotland
Airline hails 30 million passengers through Scottish airport
Ryanair said it has now carried 30 million passengers through Glasgow Prestwick Airport since it began operations there in 1994. The Dublin County-headquartered airline said it has invested heavily in Prestwick since then, with 'two based aircraft representing a $200 million investment, state-of-the-art training and maintenance facilities, and support of over 550 local jobs'. The airport at night. (Image: Getty Images) It said it also provides travellers with more choice with a 'robust' schedule of 94 weekly flights across ten routes from Prestwick Airport including holiday destinations like Alicante, Barcelona, Faro, Malaga, Palma de Mallorca, and Tenerife. Jade Kirwan, Ryanair director, said: 'We're pleased to announce 30 million Ryanair passengers through Glasgow Prestwick Airport since we began operations back in 1994. 'This significant milestone showcases Ryanair's ongoing support and investment at Glasgow Prestwick Airport, delivering important connectivity, traffic, tourism, jobs, and economic growth. This summer, Ryanair is operating a robust schedule to/from Glasgow Prestwick Airport, with 94 weekly flights across 10 routes, including top holiday destinations like Alicante, Barcelona, Faro, Malaga, Palma de Mallorca and Tenerife.' READ MORE: Ms Kirwan also said: 'Ryanair's super Summer 2025 schedule will largely operate on the 2 aircraft we have based at Glasgow Prestwick Airport – an investment of $200m and supporting over 550 local jobs. 'While Ryanair has grown significantly at Glasgow Prestwick Airport over the years, we could be growing more rapidly here and across the wider UK, but Rachel Reeves' bizarre decision to raise Air Passenger Duty taxes by £2 per passenger damages these growth prospects. 'If the UK Government wants to deliver growth, they should abolish their damaging APD tax, which makes the UK uncompetitive when EU countries like Sweden, Hungary, and regions in Italy are abolishing aviation taxes, and winning dramatic traffic, tourism, and jobs growth from the UK. 'We look forward to carrying millions more passengers to/from Glasgow Prestwick Airport on Ryanair's low-fare flights over the years to come.'
Yahoo
13-05-2025
- Business
- Yahoo
The global tourism market is booming – just not in Britain
Globally, tourism is on the up. According to the World Travel and Tourism Council (WTTC), international visitor spending is forecast to reach an historic £1.57 trillion in 2025, surpassing 2019's previous high by £123 billion. The WTTC also reported that people visiting the UK spent £40.3bn in 2024, down 5.3 per cent on 2019. The global tourism body noted that the UK is already 'one of the most expensive destinations in Europe' and the recently introduced Electronic Travel Authorisation (ETA), lack of VAT-free shopping, growing business taxes, increasing Air Passenger Duty, and cuts of more than 40 per cent to VisitBritain's budget will all hamper growth in 2025. These measures, it claimed, were 'deliberate policy choices' that create 'barriers to travel'. Julia Simpson, WTTC President and CEO – and a former adviser to Sir Tony Blair when he was prime minister – said: 'Other European countries see the economic value of travel and tourism but in the UK, it's taken for granted. Now the Government is actively damaging growth. 'The government is risking… stagnation and long-term decline, without targeted action and investment. Globally, travellers are spending more than ever before, while other countries are benefitting.' Given the Government's declared commitment to growth, it seems strange that such a valuable sector – before the pandemic, the UK Travel & Tourism sector's contribution to GDP was 9.9 per cent – is being actively shrunk. Is part of the problem the lack of a tourism minister? The current holder of the second-tier ministerial post with responsibility for tourism is Chris Bryant MP, whose full title is 'Minister of State for Data Protection and Telecoms and Minister of State (Minister for Creative Industries, Arts and Tourism)'. On his official home page, 'tourism' is at the bottom of a long list, beneath 'cultural diplomacy and soft power'. He also oversees space stations and rockets. The UK hospitality industry experienced a turbulent final quarter of 2024, with an average of more than eight venues shutting their doors every day. The Hospitality Market Monitor, which tracks data from Britain's licensed hospitality sector, warns of a net loss of nearly 3,000 venues over the course of 2025 if the trend continues. Hoteliers, already facing higher costs and wages, say the Government gives the impression it has no grip on the tourism industry. 'It's still extraordinary to me that a sector of the economy that contributes 10 per cent to GDP is so woefully understood and represented by successive governments,' says Tom Ross, CEO of The Pig chain of hotels. 'Wider political decisions are taken with seemingly little regard for their impact on hospitality, [where] businesses are being treated as ATMs for the Treasury. 'The country requires the Government to show entrepreneurial spirit and agility – as demonstrated by businesses up and down the country every day. As a country we must seize the opportunity to throw our arms wide open and encourage tourists – a warm welcome is quite natural to people in hospitality but apparently less so to those in Whitehall. 'I weep to hear that the marketing budget of Visit Britain has been slashed. In business you cannot cut your way to growth, you must find ways to grow the business to survive. By this measure, the Government is asking the hospitality economy to find ways to grow by increasing National Minimum Wage and National Insurance costs; we have to be innovative or fold under this financial pressure – it is about time the Government demonstrated their ability to do the same. Stimulate demand by affirmative actions, rather than suppressing it with punitive layers of policy.' The Tourism Alliance represents some 70 major organisations, including ABTA, Airports UK, the Bed & Breakfast Association and the Association of Leading Visitor Attractions (ALVA) – which itself has 52 members. Richard Toomer, the organisation's executive director, sees a contradiction at the heart of official policy. 'The Government is talking a good game on economic growth in general, and tourism growth in particular, but time after time we have seen policies which are hampering that growth. The imposition of the new ETA for non-visa nationals was a new cost and barrier to travel, and was bad enough, but to hike the fee 60 per cent just as European travellers were needing to apply for it, was staggering. 'We've also seen visa and Air Passenger Duty costs go up and up. And of course the additional taxes and pressures on businesses following last year's Budget have hit our sector, which is so people-dependent, especially hard.' At the end of 2024, Bryant announced a commitment to increasing international visitors from the current 41 million to 50 million by 2030. A keynote speech highlighted the importance of creating a skilled workforce, smoother logistics at airports and on railways, and drawing foreign visitors away from London. He said a Visitor Economy Advisory Council would oversee planning and strategy. 'We are hopeful that the Government's new tourism growth strategy will undertake to tackle all of these barriers and costs so that their growth targets can be achieved,' says Toomer. 'We also want to see specific mechanisms to ensure cross-Government coordination, otherwise we are concerned that the disconnect between the visitor economy and other parts of Whitehall – especially the Home Office – will continue.' In September 2020, Rishi Sunak axed tax-free shopping, claiming it was 'costly' and 'did not benefit the whole of Britain equally'. Effectively an admission that tourists only go shopping in the capital, the decision incensed retailers. 'Our latest data revealed that the absence of tax-free shopping cost the West End £640 million in unrealised sales in 2024 – a notable increase from £400 million in 2023 – with many international visitors choosing to shop in Europe instead, where they can still benefit from the policy,' says Dee Corsi, chief Executive of the New West End Company, which represents more than 600 businesses. 'In what is an increasingly uncertain global marketplace, and at a time when the Government is having to tighten purse strings elsewhere, reinstating tax-free shopping represents a rare opportunity to give British businesses a competitive edge. 'We urge the Government to take bold action by delivering a robust and fully funded tourism strategy, putting tax-free shopping at its centre. Failing to do so will result in long-term economic repercussions for British business, and run contrary to the Government's mission to go further and faster on growth.' Bryant's boss, Lisa Nandy, the culture, media and sport secretary, recently said the Government 'could explore' restoring VAT-free shopping. She added, however, 'at the moment, that's not something we're proposing to do.' Industry leaders are concerned that the lack of urgency – combined with macro-economic challenges and the unignorable geopolitical turmoil – could lead to a downturn and, potentially, a full-blown crisis in the sector. Quangos can be hesitant about turning on their paymasters. Nonetheless, VisitBritain's CEO Patricia Yates states the bare facts of the matter thus: 'VisitBritain has been informed by the UK Government that its budget to promote Britain globally to international visitors has been cut by 41 per cent with immediate effect, from about £18 million to £10.5 million for the next year. 'This will mean pulling our just-launched 'Starring GREAT Britain' screen tourism campaign from some of our largest and most valuable inbound visitor markets, affecting our ability to compete for visitors, their spending and to drive regional growth. 'This comes at a time when our forecasts are showing that the UK is starting to lose its competitive position internationally as a visitor destination, both globally and against our major western European rivals. If tourism to the UK was growing at the same pace as forecasts are currently indicating for western Europe, our analysis shows that the industry would be worth an additional £4.4 billion per year to the economy by 2030.' Since the Seventies, British holidaymakers have been able to choose between Rhyl and Torremolinos, Margate and Malta. Yates suggests the Government needs to bear in mind that everyone else has the same freedom to choose. 'Tourism is an extremely competitive global industry; visitors have a lot of choice, we face fierce competition especially from our European neighbours and we are seen as an expensive destination. Like every export industry, to be able to compete we need to be telling our story about why people should come to Britain not one day, but today.' National cuts have direct local impacts, as VisitBritain spends part of its budget pushing less obvious corners of the country. As tourism has become more sophisticated, foreign visitors are as likely to visit Birmingham as Bath. Andrew Lovett, chair of the West Midlands Tourism & Hospitality Advisory Board, said: 'Tourism is an integral and valuable component of the West Midlands economy. Thousands of small-to-medium sized businesses create good, accessible jobs for local people and offer rich cultural options for our communities to enjoy. 'Whilst we continue to enjoy a successful partnership with the Government, demonstrated by our Destination Development Partnership pilot, I am especially concerned – on behalf of visitor economy businesses across the West Midlands – of the impact that these substantial cuts to our national tourism organisations will have. These are not without consequence.' Julia Simpson agrees: 'The loss of regional support is particularly concerning. Without dedicated marketing and investment, regions outside London will struggle even more to attract international tourists, despite their huge untapped potential.' The WTTC study, produced in collaboration with consultancy Oxford Economics, also found that – in spite of all the headwinds – travel and tourism contributed £286 billion to the UK's economy in 2024, up 3.9 per cent from 2019. So, while the international spend is declining, the overall economy relies on tourism and hospitality more than ever before. The organisation calls on the UK Government to reverse cuts to VisitBritain, restore tax-free shopping for international visitors, rethink 'punitive' travel taxes and 'invest in keeping the UK globally competitive'. The Telegraph contacted Chris Bryant's office for comment but received no response. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
The Independent
26-03-2025
- Business
- The Independent
‘Air travel is a scapegoat for emissions': Airbus CEO says aviation ‘at risk' from high taxes and flight bans
The boss of Airbus, the European planemaker, has hit out at bans on short flights where rail alternatives are available. Chief executive Guillaume Faury also criticised governments for increasing taxes on flying, saying such moves risk the 'social and economic benefits of being connected by air'. The Airbus CEO was speaking at the company's 2025 Summit at its headquarters in Toulouse, southwest France. The French government has brought in a ban on domestic flights where a rail alternative was available between the two cities in less than two hours and 30 minutes. It was first proposed in 2021 and took effect in 2023, but has been criticised for being more symbolic than effective. Guillaume Faury told The Independent: 'We don't like this two-and-a-half hour rule, which came in during Covid at a time where the connection between those cities by air were loss-making, so there was not a lot of appetite to fight against this. And now we see the local politicians really frustrated with what they see unfolding as a consequence of no longer being connected by air. 'That was a political trade-off that was made. We see in the north of Europe, and other places in Europe, the trend going in the other direction, so the social and economic benefits of being connected by air are more than obvious. "Taxing, leading to less traffic, is being seen as a problem. That's what we're seeing in France as well – we see it already. 'But still I think there is an appetite to tax everything that can be taxed in the current fiscal-budget-economic environment. Aviation is portrayed as a scapegoat for carbon emissions. We are at risk, and we remain at risk.' Anna Hughes, director of Flight Free UK, said: 'The aviation industry has always benefited from little or no tax on its products: there's no tax on aviation fuel, and no VAT applied to airline tickets. 'While passengers have to pay Air Passenger Duty, it's a very small tax for an industry that is, overall, significantly undertaxed. 'Why should this already modest tax be removed? Aviation pays almost nothing towards its environmental damage; if taxes are to change at all, it should be to go up. 'Forward-thinking governments should be praised for removing domestic air routes where there's a rail alternative. Such bans benefit the environment, and therefore all of us, while maintaining interconnectedness for passengers. Governments should be looking to extend schemes like this, not remove them.' Airbus says it is committed to bringing a commercially viable hydrogen aircraft to market, though the timeline has slipped back. Chancellor Rachel Reeves has increased Air Passenger Duty at above-inflation rates from April 2026.
Yahoo
05-03-2025
- Business
- Yahoo
Europe's war on emissions will see the end of low-cost flights
Net zero reports tend to be predictable affairs, so it's perhaps no surprise that the latest update from the Climate Change Committee – the Government's official net zero watchdog and proponent of eco-friendly lifestyles – has called for a frequent flyer tax. The idea of hiking taxes on so-called frequent flyers has been a staple of environmental politics for more than a decade. To date, Conservative and Labour governments have resisted the temptation to bring in such a scheme, despite repeated suggestions from the Climate Change Committee and others. Sir Keir Starmer – something of a frequent flyer himself – has been quick to play down some of the report's more controversial recommendations, including curbs on eating meat. Before we express too much relief, though, it's worth remembering that his government has already hiked taxes on plane tickets, with a significant jump in Air Passenger Duty (APD) in the autumn budget. Increasing APD has become a bit of a hobby for recent chancellors. But Reeves was the first in 13 years to increase duty on short-haul economy tickets, a move that will increase the taxes on a flight to Spain to £15 per person from April 2026. Perhaps Rachel Reeves was just following the example of her continental peers, many of whom have seemingly identified the aviation industry – and its passengers – as their latest cash cow. Back in January, Denmark became the latest EU country to charge an additional levy on all plane tickets, charging 50 Danish Krone (around £5.50) per short-haul flight. Before the Danes, it was the Portuguese, with Lisbon's left-wing government adding a €2 levy to all flights back in 2021. Meanwhile, those EU countries that already have passenger levies have been quietly increasing them: last year, Germany hiked theirs by 20 per cent. The French government just increased its preposterously named 'solidarity tax' on short-haul flights from €2.63 to €7.40. While the charges might sound small in isolation, they can make a significant difference to low-cost carriers, which rely on fine margins to keep their ticket prices down to a minimum. But could they result in the likes of easyJet and Ryanair pulling out of higher-tax countries altogether? 'When you're running an airline, taxes are the only major variable you can control,' says Eddie Wilson, Ryanair's chief executive. 'We already have our planes; the fuel cost is the same wherever we are flying; as is the cost of the pilots and cabin crew.' 'There is sometimes an assumption among politicians that 'Oh, Ryanair can just find an extra €13 of savings to pay for APD.' Believe me, if that were the case, we would have already done it,' he adds. It would be bad enough if it were just passenger levies. But the all-powerful net zero agenda has also resulted in a barrage of new indirect charges and restrictions which could also put pressure on the cost of your next plane ticket. One such measure is the EU's plan to force airlines to use a minimum percentage of 'sustainable aviation fuel' when they fly. Given the cost of such fuels, the scheme is expected to significantly increase airline overheads – an inconvenience that will almost certainly be passed on to customers. Then there's the EU's plan to include aviation within its carbon trading scheme, meaning that airlines will have to purchase an emissions allowance to compensate for every flight they make. The carbon costs of a return flight from London to Athens could run as high as €32.50 (£27.75) per person. All this is before we get to the various measures taken by European governments themselves. France has banned domestic flights for routes where a train journey would take less than two and a half hours (that means no flights from Paris to Nantes, Bordeaux, or Lyon) and has even mooted banning private jets from landing in the country entirely. In the Netherlands, KLM has hit back at what it calls an 'incomprehensible' plan to limit landings at Amsterdam's Schiphol Airport – the fourth-busiest airport in Europe – as a way of reducing the noise impact from the aviation sector. A plan that makes even Britain's Nimby-friendly policies seem tame by comparison. Some proposals seem intent on pulling the rug out from budget airlines entirely. In 2021, the then-coalition government in Austria even proposed a minimum ticket price of €40 on all flights to or from the country – a proposal that the Austrian Greens said was necessary to stop the scourge of ultra-cheap flights. How expensive could flying get if the eco-warriors have their way? The Climate Change Committee says its proposed taxes could add the equivalent of £150 (in today's prices) to the cost of a short-haul return flight by 2050. In other words, say goodbye to £50 return tickets to Alicante. Could a Mediterranean break end up becoming a rare luxury, as it was in the pre-Ryanair days? The CCC says that its 'citizens' panel' was 'broadly accepting' of higher ticket prices. But they must know more than anyone that there's a big difference between people saying they support environmental measures and actually being prepared to change their behaviour. Have they also contemplated the possibility that some airlines might just pack up and leave? After Denmark increased its flight taxes in January, Ryanair responded by cancelling all flights from the country's Aalborg Airport. More than 1 million 'seats' (to use airline parlance) have vanished from the map. While airlines have an obvious incentive to moan about taxes, independent analysts suggest they aren't bluffing about their thin profit margins. 'The majority of air travel is price-sensitive, which is the reason airlines express concern about increased ticket taxes,' says John Strickland, an aviation expert at JLS Consulting. 'Margins on the lowest fares tend to be particularly slim, so higher taxes increase pressure on profitability. We've seen Ryanair move aircraft between markets in the past due to tax levels. When you have millions of passengers on one route, a small tax rise can have a significant impact on bottom-line profits.' If you thought airlines removing routes would dampen enthusiasm for new taxes, think again. Just last year, a major report from the left-wing New Economics Foundation proposed an EU-wide frequent flyer tax, which it claims would raise $64 billion in revenue without increasing costs for the average passenger. Too good to be true? Peer into the details and you'll soon have your answer. In fact, each person will be allocated just one short-haul flight per year (long-haul flights will be subject to an immediate €100 surcharge), after which they will pay €50 for their next trip, €100 for the one after that, and €200 for their fourth return journey. If you had naively entertained the notion that such taxes would only hit the jet-set elite, well now you have your answer. It isn't just that there's an eco-war on flying in Europe: it's that you're probably a target. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
05-03-2025
- Business
- Telegraph
Europe's war on emissions will mean the end of £50 flights to the Med
Net zero reports tend to be predictable affairs, so it's perhaps no surprise that the latest update from the Climate Change Committee – the Government's official net zero watchdog and proponent of eco-friendly lifestyles – has called for a frequent flyer tax. The idea of hiking taxes on so-called frequent flyers has been a staple of environmental politics for more than a decade. To date, Conservative and Labour governments have resisted the temptation to bring in such a scheme, despite repeated suggestions from the Climate Change Committee and others. Sir Keir Starmer – something of a frequent flyer himself – has been quick to play down some of the report's more controversial recommendations, including curbs on eating meat. Before we express too much relief, though, it's worth remembering that his government has already hiked taxes on plane tickets, with a significant jump in Air Passenger Duty (APD) in the autumn budget. Increasing APD has become a bit of a hobby for recent chancellors. But Reeves was the first in 13 years to increase duty on short-haul economy tickets, a move that will increase the taxes on a flight to Spain to £15 per person from April 2026. Perhaps Rachel Reeves was just following the example of her continental peers, many of whom have seemingly identified the aviation industry – and its passengers – as their latest cash cow. Europe's creeping green levies Back in January, Denmark became the latest EU country to charge an additional levy on all plane tickets, charging 50 Danish Krone (around £5.50) per short-haul flight. Before the Danes, it was the Portuguese, with Lisbon's left-wing government adding a €2 levy to all flights back in 2021. Meanwhile, those EU countries that already have passenger levies have been quietly increasing them: last year, Germany hiked theirs by 20 per cent. The French government just increased its preposterously named 'solidarity tax' on short-haul flights from €2.63 to €7.40. While the charges might sound small in isolation, they can make a significant difference to low-cost carriers, which rely on fine margins to keep their ticket prices down to a minimum. But could they result in the likes of easyJet and Ryanair pulling out of higher-tax countries altogether? 'When you're running an airline, taxes are the only major variable you can control,' says Eddie Wilson, Ryanair's chief executive. 'We already have our planes; the fuel cost is the same wherever we are flying; as is the cost of the pilots and cabin crew.' 'There is sometimes an assumption among politicians that 'Oh, Ryanair can just find an extra €13 of savings to pay for APD.' Believe me, if that were the case, we would have already done it,' he adds. Adding fuel to the fire It would be bad enough if it were just passenger levies. But the all-powerful net zero agenda has also resulted in a barrage of new indirect charges and restrictions which could also put pressure on the cost of your next plane ticket. One such measure is the EU's plan to force airlines to use a minimum percentage of 'sustainable aviation fuel' when they fly. Given the cost of such fuels, the scheme is expected to significantly increase airline overheads – an inconvenience that will almost certainly be passed on to customers. Then there's the EU's plan to include aviation within its carbon trading scheme, meaning that airlines will have to purchase an emissions allowance to compensate for every flight they make. The carbon costs of a return flight from London to Athens could run as high as €32.50 (£27.75) per person. 'Incomprehensible' plans All this is before we get to the various measures taken by European governments themselves. France has banned domestic flights for routes where a train journey would take less than two and a half hours (that means no flights from Paris to Nantes, Bordeaux, or Lyon) and has even mooted banning private jets from landing in the country entirely. In the Netherlands, KLM has hit back at what it calls an 'incomprehensible' plan to limit landings at Amsterdam's Schiphol Airport – the fourth-busiest airport in Europe – as a way of reducing the noise impact from the aviation sector. A plan that makes even Britain's Nimby-friendly policies seem tame by comparison. Some proposals seem intent on pulling the rug out from budget airlines entirely. In 2021, the then-coalition government in Austria even proposed a minimum ticket price of €40 on all flights to or from the country – a proposal that the Austrian Greens said was necessary to stop the scourge of ultra-cheap flights. The bottom line How expensive could flying get if the eco-warriors have their way? The Climate Change Committee says its proposed taxes could add the equivalent of £150 (in today's prices) to the cost of a short-haul return flight by 2050. In other words, say goodbye to £50 return tickets to Alicante. Could a Mediterranean break end up becoming a rare luxury, as it was in the pre-Ryanair days? The CCC says that its 'citizens' panel' was 'broadly accepting' of higher ticket prices. But they must know more than anyone that there's a big difference between people saying they support environmental measures and actually being prepared to change their behaviour. Have they also contemplated the possibility that some airlines might just pack up and leave? After Denmark increased its flight taxes in January, Ryanair responded by cancelling all flights from the country's Aalborg Airport. More than 1 million 'seats' (to use airline parlance) have vanished from the map. While airlines have an obvious incentive to moan about taxes, independent analysts suggest they aren't bluffing about their thin profit margins. 'The majority of air travel is price-sensitive, which is the reason airlines express concern about increased ticket taxes,' says John Strickland, an aviation expert at JLS Consulting. 'Margins on the lowest fares tend to be particularly slim, so higher taxes increase pressure on profitability. We've seen Ryanair move aircraft between markets in the past due to tax levels. When you have millions of passengers on one route, a small tax rise can have a significant impact on bottom-line profits.' If you thought airlines removing routes would dampen enthusiasm for new taxes, think again. Just last year, a major report from the left-wing New Economics Foundation proposed an EU-wide frequent flyer tax, which it claims would raise $64 billion in revenue without increasing costs for the average passenger. Too good to be true? Peer into the details and you'll soon have your answer. In fact, each person will be allocated just one short-haul flight per year (long-haul flights will be subject to an immediate €100 surcharge), after which they will pay €50 for their next trip, €100 for the one after that, and €200 for their fourth return journey. If you had naively entertained the notion that such taxes would only hit the jet-set elite, well now you have your answer. It isn't just that there's an eco-war on flying in Europe: it's that you're probably a target.
