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Flying From the UK Just Got More Expensive For Premium Passengers

Nov. 24, 2017
3 min read
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Flying From the UK Just Got More Expensive For Premium Passengers
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While there are some great premium class deals and redemptions available via the UK, and an abundance of premium class low-cost long haul flights available from London and other cities in Great Britain, premium travel from the UK is about to get more expensive. That's because the British government is raising a tax that the airline industry already calls the highest in the world.

Air Passenger Duty (APD) is a tax currently charged on passengers flying from the United Kingdom on an aircraft that has an authorized take-off weight of more than 5.7 tons or more than 20 passenger seats. This of course includes all passenger flights.

On Wednesday, the UK Treasury announced that will increase the APD for premium class passengers by £16 ($21) to £172 ($229). This means that it will cost every passenger flying in Premium Economy, Business Class or First Class an extra $21 to leave from a UK airport, even when flights are booked using miles or points. Passengers who are connecting via London Heathrow will also have to pay the tax, as well as those visiting from abroad or on a multi-sector journey.

A quick example of how much the current APD tax makes up of a business class ticket with British Airways from London (LHR) to Los Angeles (LAX) can be seen below. At 156 GBP ($208) it's by far the biggest tax or fee on the ticket.

Screenshot from britishairways.com

The increased APD tax will be applied to flights departing the UK from April 2019.

Airlines UK, the industry association representing UK carriers, called the hike "a sleight of hand move by the Treasury." The revenue from the APD is currently £3.3 billion ($4.4 billion) per year, according to the association, and will rise to £4 billion ($5.3 billion) in 2022/23. The association said that the tax is "the highest in the world, and is far more than those levied by our competitors, especially in Europe."

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IAG Group — which includes British Airways, Iberia, Aer Lingus, Vueling and LEVEL — is also not pleased. CEO Willie Walsh said that “if this tax continues, the UK will struggle to compete on the global stage (...) If we are open for business, why do we persist in charging people coming to the UK up to £146 to leave – a figure that will now rise?”

A way for travelers to avoid paying APD when flying from the UK would be to take a Eurostar train to Paris through the Channel Tunnel, and flying long-haul from the French city instead.

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Apply for American Express® Gold Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
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TPG Editor‘s Rating
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Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.