BARIG on the Reduction of the Air Traffic Tax - “A step in the right direction—but far too small”

Regarding the recent decision by the German Federal Cabinet to lower the air traffic tax effective as of July 1, 2026, the international airline association BARIG (Board of Airline Representatives in Germany) sees some light, however, many shadows remain. The German Federal Government needs to bring the tax back at least to the 2024 level, as was agreed in the coalition agreement. Further mitigation measures have to be taken. Michael Hoppe, BARIG Chairman and Executive Director, states accordingly:

“In view of the current geopolitical challenges, which have a significant impact on air travel in particular, the massive problem of far too high state-imposed costs in Germany remains. These costs have not only slowed down growth but have also resulted in traffic being shifted to other European countries for years. Capacity for passenger and cargo traffic remains under pressure. Connectivity is severely impacted, and so is Germany’s highly export-oriented economy.

High cost pressures: air travel in Germany is not recovering

Air travel in Germany is caught in a downward spiral caused by too high state-imposed location costs, excessive regulation, and unequal global competition. In almost all other European countries, the cost situation is considerably more competitive. Even after the planned reduction in the aviation tax, the cost burden in Germany for a flight from Europe is still nearly twice as high as the EU average. This was recently confirmed by the German Airports Association (ADV) in an analysis. The situation is alarming. In the medium to long term, it will mean that air travel in Germany will not recover due to high cost pressures, prices will continue to rise, and fewer and fewer people will be able to afford to fly.

Federal government must strengthen Germany's position as an aviation location

The German Federal Cabinet’s recent decision to lower the air traffic tax effective as of July 1, 2026, is a step in the right direction—but far too small. The announced reduction does not even bring the tax back to the level prior to the last increase in 2024, as was agreed in the coalition agreement. Flying thus remains far too expensive. In the interest of citizens and the domestic economy, the German Federal Government urgently needs to take more decisive action to strengthen Germany’s position as an aviation location in a sustainable manner. We, therefore, call on federal policymakers to lower the air traffic tax to at least the 2024 level, better further, and, furthermore, to urgently provide additional reductions in air navigation charges, aviation security fees, as well as other state-imposed costs and fees.”