Heapy fears Budget tax increases


Samantha Mayling and Andrew McQuarrie


The chief executive of Jet2 has added his voice to industry warnings against hiking aviation taxes in next week’s Budget, saying rises would mean some consumers would no longer be able to afford overseas holidays. Steve Heapy said it would be “a


disgrace” if low-income families were unable to afford a holiday, adding: “I would urge the government not to increase taxes on flying and that’s any taxes. People very often talk about APD, but it’s not the only tax we pay.” Speaking on a Travel Weekly


webcast, Heapy said: “Whether it’s an overt or a covert tax, taxes on flying


should not be increased, because taxes are demand management measures. Putting taxes up on flying will reduce demand. “Who are the people that won’t


be going? It won’t be the rich and privileged, it will be the least wealthy members of society.” Heapy was speaking after Jet2


announced plans last week to launch flights and holidays from Gatwick from next summer, and his plea to government followed those made recently by aviation leaders at the Airlines 2025 conference and Abta chief executive Mark Tanzer (Travel Weekly, November 13). Heapy said Jet2 and others in


the aviation sector had consistently lobbied the government about


Hays Travel posts £81m profit as revenue rises 11%


Ian Taylor


Hays Travel recorded a pre-tax profit of £81 million and group revenue of almost £507 million for the 12 months to April, both 11% up on the previous year. Company revenue was more


than double that in 2018-19. Hays’ travel agency revenue has doubled in that time to £280 million and its tour operator revenue more than doubled from £91 million in 2019 to £200 million this April. The company’s foreign exchange


earnings more than quadrupled from £5.7 million to £26.6 million over the same period as Hays increased its


4 20 NOVEMBER 2025


number of outlets from 139 in 2018 to about 500 this year. Staff costs rose to more than


£115 million, up from £84 million in 2023-24, and three-and-a-half times what they were in 2019 as employee numbers averaged 4,556 – up from 3,535 in 2023 and 1,465 in 2019. Hays noted the rise in employee


costs “will impact profitability in the coming financial year”. Reporting the acquisition of Miles


Away, parent of Miles Morgan Travel in 2024, Hays noted it had “achieved significant synergies”, adding: “There are also some key learnings from the business given its strength in the long-haul market.”


taxation but added: “We certainly make ourselves heard – whether they take note, I don’t know.” Heapy said concern about the


Budget and rising unemployment figures had contributed to “a very late-booking market”, as consumers held back on spending. However, he said the release


of the Budget next Wednesday (November 26) would “provide certainty, because the worst thing is uncertainty”. This view was echoed by Hays


Travel owner Dame Irene Hays. Speaking at the agency’s conference in Greece, Hays told Travel Weekly: “A good result would be for the economy to settle down. This Budget has generated more press coverage


and anxiety than any other Budget I can remember. I’d like some certainty back in the economy, because at the moment it feels volatile and uncertain.” Hays described this summer as


“changeable” for Hays Travel and concurred with Heapy over a shift to later bookings. But she said she was “pleasantly surprised” by the level of forward bookings, adding: “We can say we are up [year on year] in terms


of advance bookings.” i Jet2 to fly from Gatwick, page 5 i Airlines 2025 conference, page 55


Watch the interview with Steve Heapy in full at: travelweekly.co.uk


Dame Irene Hays


Travel Weekly understands Hays


looked at the potential purchase of Baldwins Travel before the business filed for administration in July. Hays has since acquired


Inspearational Travels (Spear Travels) in June, Victoria Travel (Cruise.co.uk) in July, Polka Dot Travel in October, and Millington Travel and The Holiday and Flight Centre this month, as well as 51% of John Stewart Travel in August and 35% of Ocean Holidays in June. The accounts state Hays Travel’s


aim “to become the UK’s most profitable privately owned travel


company through valuing our people, our customers and the communities where we operate”. They also state the company met


the UK threshold for making climate- related financial disclosures for the first time in the financial year. The accounts note: “While


customer behaviour hasn’t yet [been] significantly altered by societal trends towards more sustainable practices, it is the group’s working expectation that this will have an increasing impact on where and how our


customers choose to travel.” i Hays Travel Conference, page 10


travelweekly.co.uk


PICTURE: Christopher Ison Photography


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