Enquiry Form

A 2018 report by the Intergovernmental Panel on Climate Change (IPCC) recommended that to limit global temperature rises to no more than 1.5°C, global greenhouse gas emissions by 2030 must be 55 percent below 2017 levels. With the predicted rise in global air passengers even the International Civil Aviation Organization (ICAO) predicts that aviation emissions are expected to grow by up to 300% by 2050.

If we are to achieve the necessary global cuts in emissions, the aviation industry cannot rely on other sectors to take on the burden of reductions. Aviation needs to play its part and tackle its own emissions.

With the rise of low cost airlines, travellers can now fly from London to Barcelona for the price of a pizza and a beer or two. Why is air travel so cheap? Firstly, there is an oversupply driven by ‘open skies’ deals. In addition, unlike petrol for cars, international aviation fuel is exempt from tax and VAT. This constitutes a tax break of around £10bn annually in the UK. Economists from the IMF and World Bank believe it is time to address this issue.

Most countries do not tax aviation fuel and have mutual agreements with others not to do so. These have been in place since the 1944 Chicago Convention – signed decades before concerns over the climate crisis. The UK charges Air Passenger Duty (APD), which is similar to a tax but is nowhere near at the levels that the car industry faces, for example. Furthermore it is not ring-fenced for environmental use. To give some context, in 2017 APD raised £3.4bn, therefore representing a £6.6bn saving for airlines – the equivalent of every UK household subsidising aviation by over £240. Whether we choose to fly or not, we are making up the shortfall by paying a tax which lies unfairly unpaid by the industry.

In short, we are all heavily subsidising this polluting industry. Aviation is getting a free ride because the polluter pays principle has not been applied.