Jet2 CEO Steve Houpy urged Chancellor Rachel to stop using the Airline and Holiday Tax as airline taxes will affect the lowest-income families in foreign travel.
HheAPHY – Who is in charge of the British holiday provider and the third largest Airline by passenger numbers – said that the higher tax “will be passed on to passengers, moving forward in search and sales considerations.
“As we all know, we cannot escape the basic laws of economics,” he said. “Higher prices can lead to reduced demand, and that’s not good because the people who can’t afford a vacation will be the lower-income members of society.”
The warning comes as speculation grows that Reves could turn to the aviation sector for more money in next week’s budget. Air Passenger Duty (APD) – which is paid by almost every Air Traveler departing from a UK airport – last increased in April and is set for another one next month. Current APD prices range from £14 for domestic flights to £224 for long-haul flights over 5,500 miles.
Heapp’s comments coincide with the results of jet2’s Half results, which revealed a record revenue of £5.3 billion, up 5 percent year-on-year. Seat capacity Rose 8 8 Per cent up to 16 million, in part from new operating bases in Bournemouth and London Luton. Pre-tax profit (adjusted for foreign exchange movements) increased 1 percent to 780 million.
The airline reported a 16 percent increase in the number of passengers it flew to 4.7 million in the six months to September, reflecting an industry-wide trend of early bookings. Net Ticket Delends fell 7 percent as jet2 used promotional pricing to stimulate demand. Package vacation passenger numbers grew 1 percent to 4.7 million.
Jet2 has confirmed that it expects a fully operational profit to use the profit in line with the forecast of the agreement of $ 453 million. The financial year of the company has a heavy weight in the summer period, with a second half that produces a low profit.
The results provided confirmation after a profit warning in September, when Jet2 told shareholders it expected full adjusted profit to come in at the lower end of forward expectations and consumer spending. In response, airlines are cutting 200,000 seats from their winter schedule, reducing the total winter number to 5.6 million.
Despite the pressures, HEAPYY said that demand means resilience: “Clear customers still want their holidays to get the best of the sun, even if they book close to their departure date.”
The update comes a week after jet2 announced it would start services from London Gatwick in March 2026, after securing six flight slots. Travel offers flights from the second largest airport, but analysts say it will face a lot of competition – especially from Easyjet, which is based on more than 70 aircraft there.
Jet2 expects the new gatwick operation to open profitably in 2029.
