An overhaul of Air Passenger Duty agreed as part of a rescue deal for Flybe could be abandoned under new chancellor Rishi Sunak.
The successor to Sajid Javid is reported to be against a cut to the air tax.
A government source told the
Daily Telegraph: “The change of chancellor will make it significantly less likely to happen.
“The message was: ‘Don’t bank on it happening.’”
Slashing APD was a central part of a rescue deal agreed with ministers last month when the regional airline came close to appointing administrators after running low on cash.