German aviation tax surge threatens economy and climate goals, says IATA

The International Air Transport Association (IATA) strongly opposes the recent 19% increase in German aviation taxes, citing detrimental impacts on the country’s economy and hindrance to aviation’s decarbonisation efforts.

The tax hike, ranging from EUR 15.53 to EUR 70.83 per passenger depending on the route, is expected to decrease Germany’s competitiveness in key economic sectors, such as exports and tourism. Moreover, it could impede the recovery of Germany’s air transport industry from the pandemic, which has been sluggish compared to the rest of the EU.

IATA criticises the government’s decision, emphasising the need for measures to enhance Germany’s competitive position and stimulate trade and travel. Additionally, the tax increase undermines the industry’s ability to invest in sustainable aviation fuels (SAF) and other decarbonisation initiatives, contrary to previous commitments outlined in the coalition agreement. IATA warns that such policies could further burden the industry and ultimately impede progress toward achieving net-zero CO2 emissions by 2050.