Despite reports last week that the government was planning a further round of Air Passenger Duty (APD) increases, it now seems the aviation tax will remain at current levels.
Reports over the weekend suggest George Osborne will has scrapped plans to increase APD in a bid to soften the impact of soaring fuel costs.
It is thought APD was due to be increased in line with the retail price index measure of inflation, but a last minute decision to freeze it was prompted by the increase in fuel prices following Middle East unrest.
A number of airlines, including British Airways, have increased their fuel surcharges in a bid to mitigate the cost.
The move will likely be deemed a victory for airlines and travel companies who have been campaigning for a halt in the increases to the tax – which has increased four times in three years.
Some will be disappointed, however, if the government doesn't scrap the tax altogether and replace it with a per plane tax, something the prime minister pledged he would do in July last year.