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Airlines warn of higher prices as government raises tax

12 March 2012 Last updated at 12:13 GMT

The UK's biggest airlines are warning that families are facing taxes of up to £500 when they go on holiday because of the rise in Air Passenger Duty from next month.

The tax on passengers flying from the UK will go up by 8% in April so the government can raise £3.5bn over the next four years.

Airlines like EasyJet want the government to drop the tax.

Chris Kennedy, the chief financial officer at EasyJet told BBC Breakfast that the revenue the government raises will be "more than off-set by the damage to the economy".