Germany decided late on Thursday to reduce air traffic tax from July, down to May 2024 levels, in an attempt to boost the aviation sector.
International airlines have long complained that flying to and from German airports was too expensive and threatened to reduce their presence there
• German Chancellor Friedrich Merz’s cabinet in April approved plans to reduce air traffic tax from July, down to May 2024 levels, in an attempt to boost the aviation sector.
• The move fulfils a pledge in the coalition deal between Merz’s conservatives and Social Democrats to reverse a 2024 tax increase made by previous government
• The duty is imposed on airlines at German airports, on top of airport charges and fees
• The tax will be reduced by €2.50 ($2.91) per ticket for short-haul flights, €6.33 for medium-haul, €11.40 for long-haul
• Takes effect from July 1
• Cost to federal government will be around 170 million euros for second half of this year and 355 million euros in subsequent years
($1 = 0.8604 euros)
(Writing by Ludwig Burger)
