Will passengers really benefit after Germany cut its air travel tax?

Germany’s Bundestag voted to reduce the air travel tax effective July 1, reversing a May 2024 tax increase. The change requires Bundesrat approval. The tax per passenger will fall by between 2.50 and 11.40 depending on flight distance, with short-haul, mid-haul, and long-haul rates set at 13.03, 33.01, and 59.43 per ticket. The government estimates the measure will reduce tax revenue by about 330 million euros. The policy responds to airline complaints about high taxes and aims to support capacity, though experts expect at most around one percent traffic growth. It remains unclear how much of the savings will reach travellers.

"Germany's Bundestag voted Thursday to reduce the country's air travel tax, approving a government bill backed by the federal coalition of the conservative CDU/CSU and centre-left SPD parties. The measure, which still requires approval from the Bundesrat, will take effect from July 1st and reverses a tax increase introduced by the last government in May 2024. In practical terms, the tax levied per passenger will fall by between 2.50 and 11.40, depending on the flight distance."

"Government estimates also suggest the move will cost Germany around 330 million in lost tax revenue. The decision is partly aimed at responding to long-standing complaints from airlines about high taxes in Germany, which industry representatives say have already led to aircraft being moved abroad. But while supporters hope the tax cut could help restore capacity, experts suggest that any increase in flights or routes is likely to be modest."

"Dr. Sven Maertens from the Institute of Air Transport told a Bundestag Finance Committee hearing that the tax cut would lead to around one percent traffic growth "at most". Recently, Ryanair pushed ahead with plans to dramatically cut flights from Berlin, despite the government's plans to reduce the air travel tax. Will passengers see lower prices on flights? It remains unclear how much of the savings will be passed on to travellers."

"The headline change is simple: from July 1st, the air travel tax on each ticket will be lower assuming the Bundesrat signs off on the legislation. The exact reduction depends on distance. The air travel tax on short-haul flights will drop to 13.03, mid-haul journeys to 33.01 and long-haul flights to 59.43 per ticket. That could translate to modest savings for travellers at bes"

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