The boss of Jet2 has warned taking flights abroad could become ‘something for the rich and privileged’ should the Chancellor heap more tax hikes on the sector.
Steve Heapy on Wednesday reiterated his plea for Rachel Reeves to refrain from treating the aviation sector as a ‘cash cow’ at next week’s Budget.
Businesses are nervously waiting to hear from the Chancellor after she hit employers with a shock £25billionn raid on National Insurance contributions last year.
There has been speculation that Reeves is likely to hike Air Passenger Duty (APD) – the tax paid on flights leaving the UK.
Increases would see prices rise for customers, Heapy warned, as he revealed record sales for the six months to 30 September.
He said: ‘I would ask the government not to continue using the airline and holiday industry as a cash cow, as a bottomless pit of money.
Jet2 boss Steave Heapy warned the Budget could see flying ‘become something for the rich and privileged.’
‘Any additional taxation that’s passed on to the airline and the holiday industry is inevitably passed on to customers, and that will put prices up.
‘This would mean that the ‘lowest earning members of society’ are put off booking holidays.
‘I think that would be a perverse outcome, that flying would become something for the rich and privileged.’
Consumers have continued to leave holiday bookings later, he admitted. The operator said there is still a ‘significant proportion of the winter season still to sell’.
But Heapy said it appeared that ‘the annual overseas holiday remains a cherished priority for many’ and was a priority ‘even in uncertain economic times.’
Jet2 shares rose 3 per cent on Wednesday morning after the airline operator said sales hit £5.3billion for the six months.
Popular destinations this summer included Greece, the Balearics and mainland Spain, with the airline flying 14.09million passengers.
Mark Crouch, market analyst for investment platform eToro, said; ‘The consumer may be cautious, pockets a little lighter, but value-focused leisure remains stubbornly resilient. Jet2 isn’t flying entirely above the clouds, not yet, but today’s update suggests it has found a steadier, more reassuring tailwind.’
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