Overtaxed: BA Cuts Flights to Caribbean over High APD Rates

Overtaxed: BA Cuts Flights to Caribbean over High APD Rates
By Ruth Doherty

British Airways has announced it is set to cut the capacity of its flights to the Caribbean because of the UK’s sky-high Air Passenger Duty tax. The airline has called on the Government to scrap its ‘destructive tax juggernaut’ and says the UK tourism industry suffers from the ‘heaviest tax burden in global aviation’.

As a result, BA has decided to reduce its flights to the Caribbean, and increase its service to Florida, a holiday destination that currently has a 20 per cent lower tax rate than the Caribbean islands. BA is set to cut Caribbean flights owing to the UK's extortionate APD rates

Currently, a family of four of flying in economy class from the UK to Florida pays £240 in APD, while the same family travelling to the Caribbean would shell out £300. BA points out that these rates are more than double what a family from Germany would pay, while a family jetting out from France would be charged just £15.

And, in fact, there is no aviation tax at all in a total of 22 EU countries. The reason the Caribbean in particular loses out is because countries are placed into band for the taxation, based on how far their capital is away from the UK. So, although Florida and Hawaii are further away from Britain, New York is closer than many Caribbean capitals, so passengers are charged less tax.