Jet2 chief executive Steve Heapy has urged Chancellor Rachel Reeves to avoid using the airline and holiday sector as a “cash cow,” warning that any further increases in aviation taxes could hit lower-income households hardest and risk pricing families out of foreign travel.
Heapy, who leads Britain’s largest package holiday provider and the UK’s third-biggest airline by passenger numbers, said higher taxes would almost certainly be passed on to passengers, raising fares and suppressing demand. “Increased prices could result in decreased demand, and that’s not good because the people who will be unable to afford a holiday will be the lowest-earning members of society,” he said. “It would be a perverse outcome if flying became something for the rich and privileged.”
His warning comes amid speculation that Reeves may look to the aviation sector for additional revenue in next week’s Budget. Air Passenger Duty (APD), paid by almost every traveller departing a UK airport, last rose in April and is scheduled for another increase next spring. Current APD rates range from £14 for domestic flights to £224 for long-haul journeys exceeding 5,500 miles.
Heapy made the comments as Jet2 reported its half-year results, revealing record revenues of £5.3 billion, up 5% from the previous year. Seat capacity rose 8% to 16 million, supported by new operating bases at Bournemouth and London Luton. Adjusted pre-tax profit increased 1% to £780 million.
The airline saw flight-only passenger numbers rise 16% to 4.7 million in the six months to September, reflecting a broader trend of travellers booking later than usual. Package holiday passenger numbers grew 1% to 4.7 million, while net ticket yields fell 7% as Jet2 offered promotional pricing to stimulate demand.
Jet2 said it expects full-year operating profit to meet consensus forecasts of £453 million. The company noted that its financial year is heavily weighted to the summer, with the second half typically producing lower profits. The update follows a profit warning in September, when Jet2 reduced its winter schedule by 200,000 seats to 5.6 million after citing limited forward visibility and cautious consumer spending.
Despite these pressures, Heapy stressed that demand remains strong. “It is clear customers still want their well-earned holidays in the sun, even if they book closer to their departure date,” he said.
The announcement comes a week after Jet2 revealed plans to start services from London Gatwick in March 2026, after securing slots for six aircraft. The move gives the airline a presence at the UK’s second-largest airport, though analysts warn it will face stiff competition, particularly from easyJet, which operates more than 70 aircraft at Gatwick.
With the government preparing its annual Budget, Heapy’s comments underscore the ongoing tension between raising revenue and supporting the travel sector, which remains a key part of the UK’s economy.
