Frequent Flyer Extraordinaire Unveiled
In the realm of aviation policy, a significant shift has been gaining traction since 2015, with organisations like NEF and Possible championing the focus on frequent flyers. This movement, which targets the most frequent air travellers, has sparked a debate about the potential introduction of an ultra-frequent flyer levy.
The ultr-frequent flyers, a sub-group of frequent travellers, are those who take six or more return trips a year. Interestingly, these individuals are twice as likely to fly in luxury classes such as business or first class. They also have a preference for short-haul routes, typically 20% closer to home than the average passenger.
Over the past two decades, the number of passengers flying in and out of UK airports has grown significantly, from 220 million to 300 million. During this period, the number of UK residents not flying at all each year actually increased. However, it is the ultra-frequent flyers who have played a significant role in this growth, accounting for 63% of the new passenger traffic seen over the past two decades.
The household incomes of ultra-frequent flyers are on average 37% higher than the average air passenger, and they capture a substantial portion of passenger growth, with UK ultra-frequent flyers accounting for 39% of passenger growth over the past two decades.
The proposed ultra-frequent flyer levy is not a ticket tax, but a charge payable through the personal annual tax return for individuals flying six or more times in the previous 12-month period. This levy is focused on the most excessive travellers, presenting less financial risk for individuals who are faced with a sudden and vital need to fly.
The bulk of contemporary air travel growth is driven by the luxury trips of ultra-frequent flyers, who make up less than 3% of the UK population but take 30% of all journeys made by UK residents. This group also consumes vastly more carbon than their fair share, around eight times if the sector's emissions were spread equally across the UK population.
It is important to note that foreign residents, when included, likely account for almost half of all new air travel capacity added to the UK since 2006. This underscores the global nature of air travel and the need for a comprehensive approach to addressing its environmental impact.
For more information on NEF's aviation tax policy proposals, readers are encouraged to refer to the new report "Flying fair: modernising the air transport tax system." The report provides a detailed analysis of the issues surrounding air travel and offers practical solutions for a more sustainable future.
