Air Passenger Duty: Coronavirus

Treasury written question – answered on 13th October 2020.

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Photo of Christopher Chope Christopher Chope Conservative, Christchurch

To ask the Chancellor of the Exchequer, what estimate he has made of the amount of Air Passenger Duty charged by airlines which has not been refunded to passengers who did not undertake their booked flights in the last six months; and if he will make it Government policy that Air Passenger Duty should be repaid to passengers without the imposition of an administration fee.

Photo of Kemi Badenoch Kemi Badenoch The Exchequer Secretary

APD is a tax paid by airlines based on the number of passengers on board an aircraft that takes off from a UK airport. Whether airlines pass on the cost of the tax to their passengers is a commercial decision. If a pre booked passenger does not subsequently fly the airline has no APD liability for that passenger. HMRC does not collect information on such passengers.

Where the cost is passed on by airlines, there is no legal obligation to refund this business charge. Refunds from airlines will be governed by the terms and conditions attached to the sale of the ticket. However, the government expects all airlines operating in the UK to make their terms and conditions, including their refund policy, clear at the time of booking.

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