The German government aims to save 11.1 billion euros in the 2024 budget through various measures after rejecting plans for a kerosene tax in domestic aviation. Instead, the air travel levy on flight tickets is set to increase, estimated to bring in an additional 650 million euros annually. The decision avoids targeting Lufthansa specifically and affects all airlines.
A 17 billion euro deficit emerged in 2024 due to a Constitutional Court ruling, partly reduced by utilising reserves from unaffected special funds and decreased expected interest expenses. To address the remaining 11.1 billion euro shortfall, the government plans to save through various taxes.
The decision to increase the air travel levy aims to fill the revenue gap without implementing a kerosene tax. Currently, the levy ranges from 12.73 to 58.06 euros per passenger, varying based on the destination’s location. The potential introduction of a national kerosene tax was heavily criticised by the German aviation industry, citing increased operational costs and potential shifts in flight routes.
Lastly, the existing ticket tax introduced in 2011 generates around one billion euros annually for the government’s budgetary requirements.
[…] tax hike, ranging from EUR 15.53 to EUR 70.83 per passenger depending on the route, is expected to decrease […]