British Airways chief executive Sean Doyle has warned that the high cost of travel to and within the United Kingdom is keeping millions of tourists away and slowing economic growth. He called for a fundamental rethink of aviation taxes and rail pricing to make the country more competitive.
Aviation taxes among highest in the world
Speaking at the International Air Transport Association (IATA) annual meeting in Rio de Janeiro, Doyle noted that the UK has some of the highest aviation taxes globally. In April, air passenger duty (APD) on most flights rose by 15%, now reaching up to £8 per passenger on domestic flights, £15 for European departures, and as much as £253 for premium economy seats on long-haul routes.
“What is the biggest challenge in the country at the minute? It is growth. And what should policy be doing? It should be unblocking growth,” Doyle said. “If you want to promote tourism and aviation, the last thing you do to encourage expansion is put the cost up.”
UK lagging behind rivals
The UK government has set a target of attracting 50 million international visitors per year by 2030, up from the current 40 million. However, Doyle warned that without addressing affordability, the goal would remain out of reach. He pointed to France and Spain, which have far surpassed the UK in inbound tourism growth.
“A big part of it is cost, if you look at the surveys,” he said. “If we want to hit 50 million and want the economic benefit of that, we are going to have to change the affordability proposition to tourists.”
Fragmented rail network adds to the problem
Beyond aviation taxes, Doyle highlighted the lack of affordable and integrated travel options within the UK. He criticised the fragmented rail network and the absence of comprehensive rail passes, which he said curtails tourists’ ability to explore beyond major cities.
“We end up with tourism concentrated in places like London and Edinburgh, but the rest of the economy does not get the benefit of it,” Doyle explained. “For a family of five coming into the country and travelling, it is a huge penalty compared to what you pay in Europe.”
Heathrow expansion concerns
Doyle also expressed concerns about the government’s backing for Heathrow Airport’s third runway. While expansion could boost economic growth, he warned that if the airport develops its own scheme at a high cost, airlines might face increased charges, reducing their capacity to invest in new aircraft and routes.
BA and other airlines have urged the government to pursue a cheaper alternative to Heathrow’s current preferred option, which is estimated to cost £33 billion. Doyle said: “There is an ambition on infrastructure expansion at Heathrow, but if the cost is too high, the other side of that growth – airlines coming in with planes and investing their capital – may not come.”
Flights to the IATA summit were provided by IATA and Latam Airlines.
