The cost of a family holiday could be set to skyrocket after a new net-zero 'flight tax' was imposed on airlines by the government last week.

New rules will see airlines forced to use at least 2 per cent green fuel, rising to 10 per cent by 2040. This is despite the government's own analysis showing the knock-on potential of price inflation for consumers.

This 'green fuel' will see biodiverse alternatives such as cooking oil and animal waste combined with traditional jet fuel in a bid to lower industry emissions and meet the government's net-zero initiatives.

Some forecasts of the so-called Sustainable Aviation Fuel (SAF) legislation state that the cost of flying could rise by up to 20 per cent as a result of this 'flight tax'.

The introduction of this new fuel charge comes off the back of multiple airlines having already imposed environmental surcharges.