German Aviation Sector on Alert: High Costs Threaten Competitiveness

The German aviation sector is facing a serious crisis due to rising regulatory costs. The German Aviation Association (BDL) reported that costs imposed by the government have more than doubled since 2019, and in 2025 alone, the sector’s financial burden is expected to increase by €1.1 billion, reaching €4.4 billion.

“Federal Government Must Prioritize the Crisis”

BDL President Jens Bischof commented:

“More and more airlines are leaving Germany. Given this concerning trend, it is crucial that the federal government prioritizes the crisis facing Germany as a hub for air traffic.”

According to the association’s data, the number of point-to-point airlines based in Germany dropped from 190 in 2019 to 130 in 2025. This decline has resulted in approximately 10,000 job losses and an annual economic value loss of €4 billion.

Airlines Moving Fleets Abroad

As a result of rising costs, many airlines are relocating their fleets to lower-cost European countries. Bischof stated, “We see the consequences at almost every airport in Germany,” highlighting the advantage of hubs with competitive cost structures.

Industry Demands: Reductions in Taxes and Fees

BDL considers the reversal of the air traffic tax increased in May 2024 as a critical step for sector recovery. However, critics point out that the new coalition government has yet to implement its pre-election promise to reduce taxes.

Cargo Transport Also Under Pressure

High costs are particularly weakening competition in the air cargo sector.

At Frankfurt, Leipzig/Halle, Cologne/Bonn, and Munich airports, the takeoff fee for a B777 cargo aircraft is €1,481.

By comparison, fees are much lower at Brussels (€938), Paris-CDG (€807), Milan (€716), and Istanbul (€72).

This disparity plays a decisive role in cargo carriers relocating operations to hubs outside Germany.

Warnings from Lufthansa and Fraport

Lufthansa Cargo warned that high costs threaten global connectivity, stating, “An urgent solution is needed to secure jobs.”

Fraport CEO Stefan Schulte reminded that promised cuts are absent from the federal government’s 2026 budget, saying, “The competitiveness of German airports is rapidly eroding.”

Cautious Optimism

Cargo traffic at Frankfurt Airport increased by 3.7% in July. Growth continues on the Asia-Pacific route, while declines were observed on North America and Middle East routes. A Fraport spokesperson emphasized that “moderate growth” is expected in the second half of 2025, but geopolitical risks are being closely monitored.