Germany plans further cuts to air traffic tax as airlines press on costs
Germany is weighing additional relief on aviation charges after already moving to reverse a recent increase in its air traffic tax. Chancellor Friedrich Merz says the next step should follow as carriers argue that high taxes and fees are diverting traffic to airports outside the country.
Highlights
- Germany's coalition government will roll back the air passenger tax increase effective July 1, with further reductions planned, according to Merz.
- Merz cited air traffic diversion out of Germany due to the tax, indicating support for completely abolishing the levy but providing no specifics yet.
- Further cuts or full abolition of the air traffic tax face budgetary constraints despite longstanding industry pressure over Germany's high aviation costs.
Coalition tax rollback sets up next step
As reported by Reuters, Merz said at a business event on Tuesday that he wants to reduce Germany's air traffic tax further after the coalition decided to reverse the tax increase with effect from July 1.Asked whether the air passenger tax could be abolished altogether, Merz said, "The second part must follow." He argued that the levy is hurting Germany because air traffic is being diverted to locations outside the Federal Republic of Germany.
Merz added that he wants to correct that situation, but he did not give details on how any further reduction would be structured.
Budget implications and industry pressure
Any additional cut would have implications for the federal budget, a key constraint for any broader reduction or full abolition of the tax.The aviation industry has long complained about high operating costs in Germany, including taxes and fees, and has argued that the country's cost burden weakens the competitiveness of its airports and airlines.
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