IATA criticises rise in German passenger tax

May 7, 2024 - 9:47 am

The International Air Transport Association (IATA) has condemned this month’s 19% increase in German aviation taxes, effective from 1 May 2024, which it says will “weaken the German economy and damage aviation’s ability to decarbonise”.

The price rise of between €15.53 and €70.83 per passenger (depending on the route) will further affect Germany’s air transport recovery from the pandemic, adds IATA, highlighting that Germany’s international passenger numbers are still 20% below pre-pandemic figures. Willie Walsh, IATA’s director general, condemned the policy as a “short-term cash grab” and one which would only damage the economy’s long-term growth; something he currently perceives as “anaemic at best”.

The German government’s “unhealthy obsession with aviation taxes” would also hamper the industry’s decarbonisation initiatives, cautioned Walsh, with policymakers having broken their commitment to directly fund sustainable aviation fuel production through tax revenues. “Furthermore, the German government appears sympathetic to the European Taxation Directive which would add a tax on jet fuel,” he added.
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