UK Air Passenger Duty to rise by 8%; Virgin will absorb tax for now

Virgin Atlantic, which has regular flights from the UK to Port of Spain and other Caribbean destinations, has announced that it will absorb the increased passenger tax imposed by the British government.

The controversial Air Passenger Duty (APD) tax is expected to increase again from April 1, resulting in an eight per cent rise in the cost of a ticket. The increase applies to passengers who make their bookings befopre the April 1 deadline.

It means that British travellers to the Caribbean could pay as much as US$257 ($TT1,6100) more on tickets. Caribbean governments have been fighting the tax, which they say is having a negative impact on tourism.

Virgin's chief executive, Steve Ridgway, confirmed that his airline will not be passing on the increases to passengers, but will absorb “hundreds of thousands of dollars” by paying the tax itself to shield passengers – at least for now..