The long-awaited aviation tax reduction in Germany’s air transport sector has been suspended during preparations for the 2026 budget due to a lack of resources. The new government, which took office in April 2025, failed to deliver on its pledge to lower the aviation tax as defence and infrastructure investments took priority.
One of Europe’s Highest Aviation Taxes
The current aviation tax, increased by 19% in May 2024, has made Germany one of the highest-taxing countries in Europe. Passengers departing from Germany pay €15.53 for short-haul flights, €38.72 for medium-haul flights, and €70.83 for long-haul flights in aviation taxes.
Industry Representatives: Germany Is Losing Competitiveness
The German Airports Association (ADV) stated that the decision has caused deep disappointment in the sector and emphasised that Germany’s ambition to be a global air transport hub is now at risk. The tax burden is pushing major carriers such as Lufthansa to shift their growth strategies to neighbouring countries, while airports like Frankfurt, Munich and Düsseldorf are seeing a decline in demand for short- and medium-haul flights.
Berlin Airport, despite being in the capital, still has not reached the expected level of intercontinental connections.
Passenger Traffic Still Below Pre-Pandemic Levels
According to ADV data, Germany’s air passenger traffic still has not recovered to pre-pandemic levels. In 2024, a total of 211.92 million passengers were served, representing a 15.4% decrease compared to 2019. This decline makes it harder for regional airports to attract new routes and is putting some smaller airports at risk of closure.
Tax Cut Not Cancelled, but Uncertainty Remains
The government insists that the aviation tax cut has not been completely cancelled, only postponed. However, industry representatives warn that time is running out and that Germany is beginning to lose ground in the global aviation competition.
German Aviation Industry Warns: “Strategic Priorities Must Be Reconsidered”
Leading industry players are urging the government to make aviation a strategic priority and to review its tax policy. Otherwise, they warn, Germany risks losing its leadership in Europe both economically and logistically.
