British Airways has said it will not be recruiting 400 new staff members as a direct result of the government’s planned increases to APD in April 2012.
As outlined in chancellor George Osborne's Autumn Statement, APD is set to rise by between £1 and £14 next April, depending on the class of travel.
The British flag carrier had been planning to create some 800 new jobs next year, but will now only recruit half that number.
BA will also postpone plans to bring in an extra Boeing 747 aircraft next summer, and review the use of two others.
Keith Williams, BA’s CEO, said APD is destroying the foundations for economic growth in the UK.
“The government talks about creating the conditions for jobs and growth – but the reality is the opposite. Its tax policy, which is uniquely hostile to aivation, is costing jobs and growth at BA.
The rises in APD have left us with no alternative but to cut back on our planned recruitment.”
Williams added that many of the new jobs at BA would have been for young people.
“At a time of high unemployment for new graduates and school-leavers, it is deeply regreattable that these additional tax increase have propelled us into this decision,” he said.