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Jet2 CEO Warns Rising Aviation Taxes Could Make Flights Luxury for the Wealthy

  //travel-leisure.news-articles.net/content/2025/ .. s-could-make-flights-luxury-for-the-wealthy.html
  Published in Travel and Leisure on Wednesday, November 12th 2025 at 11:21 GMT by Flightglobal

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Air‑Travel’s Future Under Pressure: Jet2’s Chief Warns That Rising Aviation Taxes Could Make Flights a Luxury for the Wealthy

In a recent piece for FlightGlobal, the chief executive of UK low‑cost carrier Jet2, Mark Smith, laid out a stark warning: the continued escalation of aviation taxes in Britain threatens to render air travel an “affordable luxury” that only the affluent can afford. The article, published on 27 October 2023, traces the path of the UK government’s fiscal approach to the industry, explores the mechanics of the tax regime, and weighs its implications for consumers, airlines and the wider tourism sector.

1. The Tax Trail: From Airport Fees to the New Aviation Duty

The article opens by summarising the UK government’s decision to introduce a “green” aviation duty that will raise the cost of every flight departing from the UK by 15 pence per mile for most airlines. The policy is intended to fund the Department for Transport’s 2035 net‑zero targets, but the chief executive argues that the price burden will cascade down the supply chain. Smith points out that a significant share of the duty will be absorbed by airlines before the final ticket price is set, and that the cost will be transferred to passengers, especially those flying on budget carriers.

The piece links to a FlightGlobal side‑story that gives a technical breakdown of the new “airport tax” (officially the Aviation Tax Bill 2024) and explains how it differs from the earlier “Air Passenger Duty” (APD). While APD is a per‑ticket charge that varies by fare class, the new tax is mileage‑based and therefore favours long‑haul routes. This nuance is crucial: Jet2’s domestic and short‑haul operations will be hit harder, while airlines that focus on inter‑continental flights could find a small buffer.

2. Jet2’s Position: A History of Cost‑Control and a Warning About the Future

Smith explains that Jet2 has built its business model around tight cost controls, high aircraft utilisation, and a focus on leisure destinations that command premium pricing. The company has consistently managed to keep fares lower than many of its rivals, in part thanks to a partnership with airports that allows it to negotiate better rates for ground handling and parking.

In the article, Smith highlights the “tax grab” narrative – a phrase that has been floated in the press – and stresses that further hikes will not just erode Jet2’s margins but also reduce the overall demand for short‑haul flights. He argues that this will disproportionately affect leisure travel, a sector that underpins a large chunk of the UK’s tourism revenue.

The story also includes a link to an Air Transport Association press release that outlines the broader industry perspective: “Airlines are seeking a level playing field, but also a realistic timeline for the implementation of green taxes.”

3. Wider Reactions: EasyJet and the UK Civil Aviation Authority

The article goes on to quote easyJet’s CEO, Johan Lundgren, who echoed similar concerns. Lundgren’s comment – published on FlightGlobal’s “Airline Round‑Up” section – points out that while environmental goals are commendable, “the aviation sector is already struggling with high fuel costs and low passenger yields.” He notes that “any additional taxes will make it difficult for airlines to remain competitive, particularly in the low‑fare market.”

The UK Civil Aviation Authority (CAA) is also cited, citing a statement that the government “believes the tax is a necessary step toward meeting climate commitments, but it is committed to monitoring its impact on the industry.” The article links to the CAA’s policy brief, which details the projected revenue gains from the new tax and its alignment with the UK’s net‑zero commitments.

4. The Economic and Social Implications

Smith’s commentary shifts to the macro‑economic level, explaining how higher aviation taxes could have a ripple effect across the economy. He notes that the UK tourism sector is a £60 billion contributor to GDP; a reduction in flight affordability could lead to a noticeable decline in visitor numbers. Moreover, the article references a FlightGlobal research report showing that a 10 % rise in average ticket prices would cut leisure travel demand by 15–20 %.

The piece also discusses the socio‑economic dimension: “When the cost of a flight rises, it becomes a barrier for lower‑income travelers, essentially turning air travel into a preserve for the rich.” Smith concludes that a balanced approach is needed – one that incorporates environmental incentives without compromising the industry’s viability or the public’s access to affordable travel.

5. Bottom Line: Balancing Green Goals and Economic Reality

In its closing paragraphs, the article argues that while the UK government’s ambition to make aviation greener is laudable, the “tax grab” narrative reflects a deeper tension between environmental policy and the operational realities of airlines. The chief executive of Jet2 advocates for a phased implementation and the inclusion of small‑scale subsidies or tax credits for airlines that demonstrate carbon‑reduction initiatives.

The article ends on a hopeful note: “If policymakers can design a tax system that rewards green innovation without stifling demand, the aviation industry can continue to be a catalyst for economic growth and cultural exchange.” It links to a FlightGlobal piece on “Innovation in Low‑Emission Aviation” that explores potential pathways, such as sustainable aviation fuel (SAF) incentives and electrification of short‑haul routes.

Key Takeaways

With its comprehensive examination of the new tax regime, the article offers a clear perspective on the challenges and opportunities that lie ahead for low‑cost carriers, consumers and policymakers alike. While the path to a greener aviation sector is fraught with fiscal hurdles, the dialogue between industry leaders and regulators continues to shape a future where air travel can remain both accessible and sustainable.