APD is set to rise in two phases, from Sunday and then again in November 2010.
Virgin Atlantic said the increases mean the tax on a Heathrow-Dubai Economy flight will go up from £40 to £60; on a Premium Economy Gatwick-Barbados flight from £80 to £150; and on a Heathrow-Sydney Upper Class flight from £80 to £170.
The airline is calling on David Cameron to commit to scrapping further APD hikes if the Tories are elected in 2010.
Steve Ridgway, Virgin Atlantic chief executive, also said: ‘Everyone knows the airline industry, along with the wider UK business community, will be severely damaged by these unjust future increases in APD.
‘The Government seems to claim this is an environmental tax despite a total lack of evidence to support this claim.
‘Aviation is already paying its own way for carbon emissions generated and any further increases in APD are simply lining government pockets.’
Elsewhere, ABTA pointed out that the UK is one of only two governments to tax airline passengers in this way.
Chief executive, Mark Tanzer, said: ‘These APD rises will put pressure on jobs and damage local economies reliant on tourist expenditure both here and abroad when we are already suffering from the impact of the recession.
‘They will place an even greater financial burden on families and others on tight budgets as they book their holidays or visits to friends and family.
‘They will undo a lot of the good work being done by the industry to keep prices at an affordable level.’
See also:
80% think APD is unfair (28/10/2009)
AITO predicts ‘black Sunday’ (27/10/2009)
Olympic warning over APD (16/10/2009)
CWT calculates corporate cost of APD hike (12/10/2009)
ABTA turns attention to premium economy (14/08/2009)
Virgin steps up APD campaign (16/07/2009)