easyJet (London Luton) will scrap some of its domestic flights in the United Kingdom after the country announced an increase in air passenger duty (APD) in its autumn budget, The Telegraph reported.

The carrier warned that rising prices will likely lead to lower demand, meaning some flights will become moot, according to incoming CEO and incumbent CFO Kenton Jarvis. The move is “disappointing” and will “tax the working person”, he added.

ch-aviation has contacted easyJet for further details.

In its recently published annual results, the low-cost carrier warned of a negative demand impact of new taxes in the UK and France despite a generally positive outlook. The company posted a 34% increase in full-year 2024 profit before tax to GBP610 million pounds (USD772 million).

“APD is a tax on airlines and aircraft operators,” a UK government statement said. “The government’s understanding is that airlines and aircraft operators ordinarily pass the cost of APD through to the consumer in prices, although this is a commercial decision for the airline or operator. This measure may therefore impact individuals who travel by air, who may see an increase in air fares. Those individuals who travel in a non-economy class and by larger, more luxurious private jets may see a bigger increase.”

The move will increase rates by GBP2 (USD2.53) per fare on short-haul flights in 2025, UK Chancellor Rachel Reeves explained during a budget presentation. A further rise in 2026 is also planned.

“Air passenger duty has not kept up with inflation in recent years, so we are introducing an adjustment, meaning an increase of no more than two pounds for an economy class short-haul flight,” she said.

Ryanair (FR, Dublin International) reacted similarly to the UK government’s move, noting it would cut 10% of its UK flights as a result of the decision.