National statistics

Air Passenger Duty statistics commentary May 2023

Updated 30 June 2023

Released: 30 June 2023. Next Release: June 2024.

Headlines

The latest headlines for Air Passenger Duty statistics are:

• total provisional Air Passenger Duty (APD) receipts for the last complete financial year 2022 to 2023 were £3,181 million, which is £2,166 million (213%) higher than the previous financial year

• total provisional Air Passenger Duty (APD) receipts for the 2023 to 2024 financial year-to-date (April to May) are £577 million, which is £152 million (36%) higher than the same period in the previous financial year

• APD receipts from March 2020 onwards are significantly lower than historical levels, due to the coronavirus (COVID-19) pandemic and receipts fluctuated in 2020 to 2021 as multiple travel restrictions were implemented

• since travel restrictions were lifted, receipts have been recovering post-pandemic with figures rising from early 2021 to present day, moving towards pre-pandemic levels

• the significant increase in receipts in the current financial year-to-date compared to the year before is consistent with observed increases in passenger numbers after domestic and international travel restrictions were lifted. A similar increase in passenger numbers has also been reported by the Civil Aviation Authority

About this release

This publication provides National Statistics on APD receipts, declarations and passenger numbers.

The statistics in this release are based on recent and historic trader returns. This release includes new information from May 2022 to May 2023.

APD is due on aircraft that depart from airports in the UK and carry passengers. Duty is charged on each passenger at the rate for the place of their final destination.

Up to March 2023, there were 2 destination bands:

• Band A: distance from London to the country’s capital is 0 to 2,000 miles
• Band B: distance from London to the country’s capital is over 2,000 miles

As of April 2023, this has been updated to 4 destination bands:

• Domestic: for destinations in England, Scotland, Wales and Northern Ireland only
• Band A: distance from London to the country’s capital is 0 to 2,000 miles
• Band B: distance from London to the country’s capital is 2,001 to 5,500 miles
• Band C: distance from London to the country’s capital is over 5,500 miles

There are 3 rates of duty for each destination band:

• Reduced rate: lowest class seating, seat pitches less than 1.016m (40in)
• Standard rate: any other class of seating, seat pitches more than 1.016m (40in)
• Higher rate: travel in planes of 20 tonnes or more, equipped to carry fewer than 19 passengers

In this edition, we have introduced two additional higher rate bands: Band A and Band B. These figures refer to Band A and Band B as they were prior to April 2023. Passenger numbers for these bands can be found in the May 2023 APD tables. More information on duty bands and rates can be found on the Rates for Air Passenger Duty page.

Coronavirus (COVID-19)

Impacts from the coronavirus (COVID-19) pandemic and public health measures are visible within changing trends to receipts collected for APD since March 2020. This is caused by a mixture of changes to payment timings, various national and regional travel restrictions introduced, and policies affecting business and emerging economic impacts.

Receipts Analysis

Figure 1: Total APD receipts for the previous ten financial years

For the full data behind this chart, please refer to the accompanying statistics tables for May 2023.

Figure 1 demonstrates several trends for Air Passenger Duty receipts by financial year:

• receipts for the previous 2 financial years are significantly lower than previous years, due to impacts from the coronavirus pandemic as described above

• the increase in receipts between the financial year ending 2021 and the financial year ending 2022 can be attributed to the increase in passenger numbers and the duty rate increase from 1 April 2021

• the increase in receipts between the financial year ending 2022 and the financial year ending 2023 can largely be attributed to increases in passenger numbers as there was a return to pre-COVID behaviour, with domestic and international flights more easily available after restrictions were lifted

• prior to the financial year ending 2021, receipts had been largely increasing since the financial year ending 2013 apart from a small dip around the financial year ending 2016

• receipts for the financial year ending 2020 followed this increasing trend up to February 2020, however, March 2020 receipts were significantly impacted by initial impacts from the coronavirus (COVID-19) pandemic

Figure 2: Total APD receipts by financial quarter for the current and previous six financial years

Each bar in this chart represents a financial quarter. For the full data behind this chart, please refer to the accompanying statistics tables for May 2023.

Figure 2 demonstrates several trends for Air Passenger Duty receipts by quarter:

• receipts in the previous four quarters have increased significantly compared to the financial year ending 2022, reaching £774 million in the fourth quarter of the financial year ending 2023, compared to £409 million in the fourth quarter of the previous financial year

• receipts for the previous 2 financial years of quarterly data are significantly lower than in previous years due to the coronavirus (COVID-19) pandemic which also affected receipts in quarter 4 of the financial year ending 2020

• receipts generally follow a quarterly pattern, being higher in quarter 2 (July to September) and lower in quarter 4 (January to March)

Passenger numbers analysis

Chargeable passengers are any passengers on a chargeable aircraft, with the exception of any that are:

• in transit when the aircraft lands in the UK and the passengers don’t change aircraft
• changing to a connecting flight, subject to certain rules
• carrying out certain duties, such as airline employees or escorting a passenger/goods
• children under two years of age who aren’t allocated a seat
• passengers carried under a statutory obligation (such as inspectors or deportees)
• children under 16 years of age and in the lowest class of travel

Figure 3: Total chargeable passengers in band A and B, for reduced and standard rate by financial quarter

Each bar in this chart represents a financial quarter. For the full data behind this chart, please refer to the accompanying statistics tables for May 2023..

Figure 3 demonstrates several trends for Air Passenger Duty receipts by band and rate in each quarter:

• total passenger numbers for the financial years ending 2021 and 2022 are significantly lower than in previous years and the current financial year, due to the coronavirus (COVID-19) pandemic which also affected passenger numbers in quarter 4 of the financial year ending 2020. Numbers are now returning to pre-pandemic levels

• total chargeable passenger numbers follow a strong quarterly pattern. They are highest in quarter 2 (July to September) and lower in quarter 3 and quarter 4 (October to March)

• reduced rate band A and B passengers make up a large majority of total chargeable passengers. These ratios have been fairly consistent for the last 10 years, however the proportion of standard rate passengers to total passengers has increased in recent years