Air Passenger Duty statistics commentary May 2022
Updated 30 June 2022
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This publication is available at https://www.gov.uk/government/statistics/air-passenger-duty-bulletin/air-passenger-duty-statistics-commentary-march-2021
Released: 30 June 2022. Next Release: June 2023.
Headlines
The latest headlines for Air Passenger Duty statistics are:
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total provisional Air Passenger Duty (APD) receipts for the last complete financial year 2021 to 2022 were £1,015 million, which is £430 million (73.5%) higher than the previous financial year
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total provisional Air Passenger Duty (APD) receipts for the 2022 to 2023 financial year-to-date (April to May 2022) are £424 million, which is £387 million higher than the same period in the previous financial year
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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
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receipts have been recovering quarter to quarter across 2021 to 2022 as restrictions were lifted
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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 has also been reported in passenger numbers 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 September 2021 to May 2022.
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.
There are 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
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
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, policies affecting business and emerging economic impacts.
Receipts Analysis
Figure 1: Total APD receipts for the previous 10 financial years
For the full data behind this chart, please refer to the accompanying statistics tables for May 2022.
Figure 1 demonstrates several trends for Air Passenger Duty receipts by financial year:
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receipts for the previous 2 financial years are significantly lower than previous years, due to impacts from the coronavirus pandemic as described above
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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
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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
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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 6 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 2022.
Figure 2 demonstrates several trends for Air Passenger Duty receipts by quarter:
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receipts in the previous 4 quarters have increased compared to the financial year ending 2021, reaching £409 million in the fourth quarter of the financial year ending 2022, compared to £113 million in the fourth quarter of the previous financial year
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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
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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 2 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 2022.
Figure 3 demonstrates several trends for Air Passenger Duty receipts by band and rate in each quarter:
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total passenger numbers for the financial years ending 2021 and 2022 are significantly lower than in previous years due to the coronavirus (COVID-19) pandemic which also affected passenger numbers in quarter 4 of the financial year ending 2020
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total chargeable passengers follows a strong quarterly pattern, it is highest in quarter 2 (July to September) and lower in quarter 3 and quarter 4 (October to March)
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reduced rate band A and B passengers make up a large majority of total chargeable passengers
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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