How do travel firms manage aviation taxes?

The impact of global warming is being keenly felt across the globe and the travel industry is being viewed with increasing suspicion over its role in environmentalism.

Part of the efforts to reduce the impact of emissions from the sector is to introduce higher taxes to price out certain behaviours and cause a major shift in how travel is conducted.

However, many feel that these taxes are more about lining pockets than preserving the planet, so it is worth assessing their impact.

What are the main aviation taxes?

There are a number of taxes that have been increased recently or are set to rise in the near future.

Air Passenger Duty (APD) and the Sustainable Aviation Fuel (SAF) mandate are both aiming to target air travel by making it more costly for passengers to fly.

Travel firms will need to brace for higher per-passenger tax liabilities and adjust costs and calculations accordingly while also managing the administrative burdens that come with fuel taxes.

Will these measures work to make the sector more sustainable?

It seems unlikely that raising the cost of air travel will have a major impact on the number of people travelling.

Measures that directly address unsustainable behaviours are generally more effective, especially if funds are given to allow companies to effectively change their practices without harming their margins.

Generally, people fly when they need to and the elevation of prices does little to deter them, as the holiday they seek or the family they need to visit will not move, so air travel remains the only option.

How can travel firms manage rising costs?

Costs are rising in many areas, so being agile with finances is imperative.

We are on hand to assist you with managing your expenses and plans to ensure you are not unduly hit by financial or administrative burdens.

Don’t let rising taxes ground your business. Speak to our team today for expert financial help and guidance.