German carriers offer tepid welcome to air traffic tax cut

Representatives of airlines operating in Germany have coolly welcomed a federal government measure to reduce the country’s air traffic tax from 1 July.
The federal cabinet approved a draft law to lower the tax to the level of statutory tax rates in effect before 1 May 2024.

This will result in planned cuts of 16% in the tax across all three distance-to-destination categories – less than 2,500km, 2,500-6,000km, and over 6,000km – as measured from Frankfurt Main.

Germany’s finance ministry says it “considers it important” that the reductions are “passed on to travellers”.

The Board of Airline Representatives in Germany, describes the measure as a “step in the right direction”.

But it also states that the cut is “far too small”, particularly given the current geopolitical situation, and that “many shadows remain”.

“These costs have not only slowed down growth but have also resulted in traffic being shifted to other European countries for years,” claims BARIG executive director Michael Hoppe.

Citing analysis by German airport association ADV, he argues that the cost burden in Germany for a flight from Europe will be nearly twice the European Union average, even after the planned cut.

The new rates will still be more than 4% above the level of the previous rise in 2024.

“Air travel in Germany is caught in a downward spiral caused by too-high state-imposed location costs, excessive regulation, and unequal global competition,” adds Hoppe.

He says the government “urgently” needs to take “more decisive action” – including lowering the tax to the 2024 level.