The Scottish government has confirmed plans to halve Air Passenger Duty by the end of the current Scottish Parliament in 2021.
Willie Walsh, IAG chief executive, welcomed the move.
He said: “This is a major step towards the complete abolition of this stealth tax that hinders economic growth, tourism and jobs.
“However, the piecemeal reduction of APD will only serve to undermine airports in the north of England as passengers will rush across the border to get cheaper flights.
“This will create a domino effect across the whole country which is not sustainable.
“The Treasury must acknowledge that partially scrapping APD will not work and that the solution is simple.”
Walsh said, by abolishing this futile tax, UK GDP would gain 1.7 per cent and create 61,000 new jobs over the longer term.