Heathrow Airport is calling on the United Kingdom to remove the air passenger duty (APD) on all domestic flights this autumn.
Heathrow highlights that current APD rates leave U.K. domestic travellers paying roughly £225 million more per year in taxes than passengers on comparable routes elsewhere in Europe. As an alternative, the airport has put forward a nine-point plan focused on helping regions connect to global markets and preparing the country for the economic changes of Brexit.
The proposal estimates that abolishing APD on domestic routes would boost demand for air travel by around 8 percent, improving connectivity between regions and supporting business and leisure travel.
John Holland-Kaye, Chief Executive Officer of Heathrow, said, “Preparing for a post-Brexit economy means this budget must include practical, deliverable and binding plans to support the whole of the U.K. Removing APD on domestic flights would be a bold measure to enhance British competitiveness, lower travel costs for companies travelling to London and beyond, and help ensure that every part of the country can prosper.”
Mark Povall, Strategy Director at Liverpool John Lennon Airport, commented that APD continues to act as a barrier to airline expansion in the U.K. and can threaten the viability of domestic routes that connect regional economies.
David Laws, Chief Executive of Leeds Bradford Airport, added that improving domestic connectivity is central to their mission. “Cutting APD on all U.K. domestic routes would make it easier and more affordable for businesses and tourists to travel through our airport and reach our region, supporting jobs and local growth,” he said.
Removing the duty, Heathrow argues, would not only reduce travel costs for passengers and companies but also strengthen regional economic links, encourage more frequent services, and help distribute the benefits of trade and tourism more evenly across the country. The airport’s plan emphasizes targeted, practical measures designed to secure sustainable growth, support regional hubs, and enhance the U.K.’s overall competitiveness on the world stage.
Heathrow’s recommendation is positioned as part of a broader strategy to modernize the country’s aviation tax framework while encouraging investment in domestic routes and airport infrastructure. By relieving the tax burden on short-haul travel, the proposal aims to make regional airports more attractive to carriers, stimulate route development, and increase choice and connectivity for passengers throughout the U.K.
Airport leaders say the proposed change would particularly benefit businesses that rely on efficient links between regional centres and international gateways, as well as leisure travellers who would see lower fares and more options. They argue that an uplift in passenger numbers could create positive knock-on effects for local economies, from increased tourism spending to greater access to national and international markets for exporters and service providers.
In calling for this reform ahead of the autumn budget, Heathrow and regional airport executives stress the potential for a relatively simple fiscal change to deliver measurable economic advantages—supporting jobs, encouraging airline investment, and improving connectivity across the United Kingdom.