Core Viewpoint - The airline and holiday industry is being treated as a "cash cow" by the government, leading to increased taxes that could make flying unaffordable for lower-income individuals [1][2][3]. Taxation Impact - The government has already imposed significant taxes on the airline sector, and further increases in air passenger duty (APD) are expected to raise airfares, making it difficult for financially constrained Britons to afford holidays [2][4]. - The Chancellor is considering an increase in APD, which would result in a £2 rise for short-haul flights and a £12 increase for long-haul flights, with domestic flight taxes also increasing to £8 [6][7]. Economic Consequences - Increased taxation will likely be passed on to customers, leading to higher prices and potentially reduced demand, which would disproportionately affect lower-income individuals who may not be able to afford holidays [4][5]. - The airline industry is facing a significant increase in business rates, with Heathrow expected to incur costs of about £600 million, Gatwick £200 million, and Manchester Airports Group £150 million, which will also be transferred to airlines and passengers [7][8]. Consumer Behavior - There is a trend of consumers delaying holiday bookings due to cost of living concerns, with more customers opting for offers that allow them to lock in prices with a £60 deposit [9][10]. - Jet2 reported a 7% decrease in flight-only fares over the summer as the company reduced prices and increased marketing efforts to fill planes, resulting in a 6% rise in passenger numbers to 14 million and a 1% increase in pre-tax profit to £800 million [10].