Chancellor Rishi Sunak announced a cut to Air Passenger Duty (APD) for domestic flights in todays budget.
The move means that passengers using domestic airlines such as Loganair will no longer be penalised by paying APD in both directions putting them on par with airlines flying to Europe.
Mr Sunak also announced a new dual rate for long-haul flights with those flying more than 5,500 miles will be subject to higher rates.
The changes though will not happen until 2023 leaving some airlines wondering why.
In a statement leading regional airline Loganair said: “We’re heartened that the Chancellor has clearly recognised the strategic importance of UK regional air services by reducing APD, and this move is also a vote of confidence in the industry’s extensive efforts to de-carbonise. It never made sense for domestic return flights – including to many outlying parts of the UK – to be taxed at double the rate of return flights to Europe.
“However, having recognised that, this measure could and should be implemented by April 2022 at the very latest, if the full benefit for the UK economy through restoring connectivity after the pandemic is to be realised. Why wait?”
Other Airlines set to benefit from the cut will be Ryanair, EasyJet and British Airways subsidiary, BA Cityflyer which could boost regional airport connectivity.
