UK to cut domestic air passenger duty, introduce long haul charge

LONDON (Reuters) - British finance minister Rishi Sunak said on Wednesday he would reduce air passenger duty (APD) for domestic flights and introduce a new higher band for ultra long-haul journeys.

APD is charged per passenger flying from a British airport to both domestic and international destinations in bands that take account of distance and class of travel.

"Flights between airports in England, Scotland, Wales and Northern Ireland will, from April 2023, be subject to new lower rate of air passenger duty," Sunak told parliament, a week before Britain hosts the COP26 United Nations climate summit.

Air passenger duty is currently 13 pounds ($18) per passenger for economy-class short-haul flights, 82 pounds for long-haul destinations, and roughly double these rates for business class travel.

Sunak said that as most aviation carbon emissions come from international flights, from April 2023, a new ultra long haul band of air passenger duty of 91 pounds for economy-class would be introduced for flights of more than 5,500 miles.

($1 = 0.7272 pounds)

(Reporting by Kylie MacLellan; Editing by Hugh Lawson and Kate Holton)