Taxes on air fares will more than double after the Government pressed ahead with plans to increase air passenger duty (APD).

Despite complaints from the beleaguered travel industry, the taxes on all flights will increase sharply for the second time in two years.

The increases, which were mooted in the PreBudget Report last year, will penalise long-haul flights and premium tickets most heavily.

The tax on a single economy flight to Australia will increase from £40 to £85 by the end of next year. This is a quadrupling of the rate since 2007, when the duty was only £20.

A family of four going on holiday to Florida will pay £480 in taxes for return economy tickets from next year. This rises to £960 if they travel in premium economy, business or first class.

Travel companies reacted angrily to the increases, which they claim will endanger jobs in the industry.

Dermot Blastland, managing director of Thomson Holidays, Britain’s largest tour operator, said: “We find it outrageous that despite clear briefings explaining why this tax is unfair and unjust, the Government continues to carry on regardless.”

APD raises about £2 billion a year for the Treasury and the Government has said that further increases in the tax are consistent with its target of encouraging lower carbon dioxide emissions.

The APD rates are now determined by the distance travelled and the class of ticket bought. Passengers travelling premium economy, business or first class on the longest flights will now pay £170 in tax, up from £40 two years ago.

The tax on an economy short-haul flight will increase to £11 this year and £12 next year, compared with £5 two years ago. A family of four flying to Spain will therefore pay £96 in taxes for return flights – an increase of 140 per cent since 2007.

The airline industry said that it was disappointed with the increase particularly as carriers are already suffering a severe decline in passenger numbers.

British Airways said: “The aviation industry is facing an extremely difficult trading environment. These rises in air passenger duty would further penalise working families, harm economic recovery and put the UK at a competitive disadvantage. APD was doubled two years ago, making air travel from the UK the most heavily taxed in the world.”

Mr Blastland added: “We are incredibly disappointed that the Government chose not to address the fact that some of the world’s poorest countries will suffer from a decrease in tourism for the sake of a badly thought-out tax.”

Ed Anderson, chairman of the Airports Operators Association, said: “Increases to air passenger duty, coming on top of an already difficult economic climate, will make it harder for airports and airlines to continue to operate some routes. Raising the cost of flying will add to the costs for companies seeking foreign business and investment and threatens to undermine any recovery.”