Incoming German government vows to cut aviation taxes
The incoming German coalition government is promising to cut aviation taxes including a plan to reverse last year’s increase in the country’s air passenger tax.
The commitment is included in a 144-page coalition agreement between the Christian Democrats, which won Germany’s election in February, and the Social Democrats. The next government will be led by CDU leader Friedrich Merz.
“We want to reduce aviation-specific taxes, fees and charges, and reverse the increase in the aviation tax,” said the coalition agreement.
The previous German government raised air passenger taxes by 20 per cent in May 2024 – drawing criticism from German travel buyer association VDR and airline groups such as IATA.
The new coalition is also promising to “immediately abolish” the previous government’s policy of introducing a minimum quota for the use of synthetic fuels by airlines, known as the Power to Liquid quota, which had been due to be introduced in Germany from 2026. The coalition agreement said that this requirement on airlines “exceeds the EU standard”.
“We will ensure that European airlines are not disadvantaged compared to non-European airlines with regard to the sustainable aviation fuels (SAF) quota,” said the agreement.
“Our goal is to shape the modernisation of the aviation industry and air transport towards fair competition and decarbonisation. The coalition is committed to improving the international connectivity of German airports to support economic growth.”
Stefan Schulte, CEO of Frankfurt Airport operator Fraport, welcomed the incoming German administration’s commitments to help boost air travel.
“The new German government is setting the right course by reducing the air traffic tax and eliminating the national blending quota for synthetic aviation fuels that are not yet available on the market,” added Schulte. “These measures can help to unlock dynamic growth in aviation again over the medium term.”
