easyJet to Cut UK Domestic Flights Amid Air Passenger Duty Hike

easyJet (London Luton) plans to reduce its domestic flights in the UK following an announced increase in air passenger duty (APD) in the autumn budget, according to The Telegraph. The carrier cited rising costs and anticipated lower demand as reasons for the decision.

Incoming CEO and current CFO Kenton Jarvis criticized the move, calling it “disappointing” and a tax burden on everyday travelers. The airline has yet to disclose which routes will be affected.

In its annual results, easyJet highlighted concerns over the negative impact of rising taxes in the UK and France, despite reporting a 34% increase in full-year 2024 profit before tax to GBP610 million (USD772 million).

The UK government justified the APD increase, stating it typically impacts ticket prices as airlines pass the cost to consumers. Starting in 2025, short-haul economy fares will see a GBP2 (USD2.53) rise, with further increases planned for 2026. Non-economy travelers and private jet users will face higher rates.

UK Chancellor Rachel Reeves explained the adjustment, stating, “Air passenger duty has not kept up with inflation, so we are introducing an increase of no more than two pounds for short-haul flights.”

Ryanair (FR, Dublin International) also announced cuts, slashing 10% of its UK flights in response to the tax hike. The changes reflect growing challenges for budget carriers navigating increased operational costs and demand fluctuations in the UK aviation market.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com