The chancellor has ignored calls for cuts to the controversial air passenger tax in the Autumn Statement.
Airline executives including Willie Walsh, IAG, Michael O’Leary, Ryanair and Easyjet’s Carolyn McCall urged the government to rethink its stance over APD.
They claimed the duty is “hampering” Britain’s economic growth, business and tourism, noting that its removal would boost GDP by 1.7 per cent and create 61,000 new jobs by 2020.
However, chancellor Philip Hammond gave no mention of the tax in Wednesday’s statement.
Airline lobby group A Fair Tax on Flying said a reduction in APD would provide a real boost for business.
“APD harms our global competitiveness, which should be the highest priority on the political agenda at this crucial point in time, after the vote to leave the European Union,” the group said in a statement.
“This comes as Austria announces a 50% cut in aviation tax by January 2018, which will place the UK at a further competitive disadvantage. APD in the UK is amongst the highest in the world, and double that of Germany which is the next highest in Europe.”
The Airports Operators Association CEO Darren Caplan said: "Halving APD would have sent out a signal internationally and encouraged airlines to schedule more routes to the UK and fly more frequently on existing routes, boosting the UK’s connectivity."
"The AOA will continue to make the case that APD is unfair on families and a tax on the UK’s global competitiveness and connectivity.
"APD is one of the highest air taxes in the world and, with our nearest neighbours charging nothing or less than half of what the UK levies, it harms our global competitiveness."