The UK has reportedly become one of Europe's most expensive countries for air travel.

Global industry body International Air Transport Association (IATA) has outlined how the nation had become one of the more costly locations across the continent for travel by plane, Business Traveller reports.

Several factors have played into this - from the country's growth outlook and taxes.

Costs for airlines to operate in the UK, as well as the nation having some of the highest ticket taxes across Europe, have contributed to the issue. 

The country is declining in popularity too.

Airlines, including easyJet, Ryanair and British Airways, recently reported a reduction in international tourists visiting the UK, as per Travel And Tour World. 

What's more, partner airlines in UK airports have also decreased over the last ten years. 

Many companies have been put off by the lack of space in airports and increasing charges.

Air Passenger Duty (APD) - a levy on air fares also known as the ‘holiday tax’ - is set to increase by 15 per cent from April 2026 on most fares which contributes to rising costs.

Analysis for the Daily Mail from the IATA shows that the equivalent of around 20 per cent of an average basic fare will be tax. 

For example, a family of four heading on holiday to Dubai or Florida next summer would pay more than £400 in tax on economy fares for the first time.

A Treasury spokesman explained that 'unlike other sectors, no VAT applies to plane tickets'. 

Other issues like National Insurance increases and sustainable aviation fuel add to the issue of costs,  according to the IATA, speaking at the Airlines 2025 conference.

It comes after air fares soared by 30.2 per cent between June and July this year.

This marked the largest jump between those months since the collection of monthly data began 24 years ago.

The Office for National Statistics (ONS) said in August that the increase was significantly above the 13.3 per cent rate recorded between the same months in 2024.

Experts believe the hike could have been influenced by the timing of the school summer holidays this year which may have made European flights more expensive.

This is because the collection day this year's data overlapped with the start of school holidays for some (July 15) - while last year it was during the school term (July 9).

The annual rise in air fares, comparing July 2025 against July 2024, was 15.5 per cent.

This is up from a 0.5 per cent annual rise in June and a 3.9 per cent annual fall in May.