Cheaper Avios redemptions as Air Passenger Duty cut in budget

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From a miles and points perspective, the key point in the UK Budget Statement yesterday was not the cut in Bingo Duty to 10%, nor the freezing of cider duty, but a cut in the rate of Air Passenger Duty to certain long-haul destinations.

Budget box

Except for one flight from Belfast, the current rates of Air Passenger Duty are as follows:

0 – 2,000 miles: Economy £13, Other £26

2,000 – 4,000 miles: Economy £67, Other £134

4,000 – 6,000 miles: Economy £83, Other £166

6,001 miles: Economy £94, Other £188

The distances are NOT based on your flight but the distance from London to the capital city of the country you are visiting. The exact band for each country can be found in Appendix 1 here.

In the changes announced yesterday, the two highest bands will be abolished from 1st April 2015. Based on the current figures, which will be adjusted for inflation before April 2015, APD on Economy tickets to anywhere over roughly 8 hours flying time will fall by up to £27 and by up to £54 in Business. The numbers are still crazy, of course. A family of four flying in Economy will still face a tax bill of £268. Any reduction is better than nothing, though.

The Chancellor also announced an increase in the Regional Air Connectivity Fund, which either a) wastes your money by paying airlines to operate uneconomic routes or b) encourages airlines to launch new routes at a time of economic hardship, depending on your political leaning.

How to earn Avios points from UK credit cards

How to earn Avios from UK credit cards (December 2021)

As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!

There are two official British Airways American Express cards with attractive sign-up bonuses:

British Airways BA Amex American Express card

British Airways American Express

5,000 Avios for signing up, no annual fee and an Economy 2-4-1 voucher for spending ….. Read our full review

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points, such as:

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Run your own business?

We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios:

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard for a limited company Read our full review

You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus: