Germany’s new coalition government has announced plans to reduce aviation taxes, including reversing a tax hike introduced last year on air travel.
The proposed changes are part of a 144-page coalition agreement between the Christian Democrats (CDU), who won the national election in February, and the Social Democrats. The incoming administration will be led by CDU leader Friedrich Merz.
“We want to reduce aviation-specific taxes, fees, and charges, and reverse the increase in the aviation tax,” the agreement states.
In May 2024, the previous government raised the air passenger tax by 20 per cent. The move sparked criticism from several groups, including the German travel buyers’ association VDR and global airline industry body IATA.
The new government also plans to cancel a rule that would have required airlines to use a minimum amount of synthetic aviation fuel starting in 2026. Known as the Power to Liquid quota, the rule was seen as stricter than what the European Union demands.
“We will ensure that European airlines are not disadvantaged compared to non-European airlines regarding the sustainable aviation fuel (SAF) quota,” the coalition partners said.
The agreement highlights the coalition’s intention to modernize aviation while ensuring fair competition and reducing carbon emissions. It also promises to improve international flight connections at German airports to support the country’s economy.
Frankfurt Airport operator Fraport’s CEO, Stefan Schulte, welcomed the government’s announcement.
“The government is making the right decision by lowering the air traffic tax and scrapping the national quota for synthetic fuels, which are not yet widely available,” said Schulte. “These steps could help the aviation industry grow again over the medium term.”
Schulte also criticized Germany’s high regulatory costs, saying they hurt the country’s global competitiveness. He pointed out that these costs have led to stagnation in passenger traffic at Frankfurt Airport.
In the first quarter of 2025, Frankfurt Airport handled 12.4 million passengers, a drop of 0.9 per cent compared to the same period last year.
Unlike other major European airports, Frankfurt has not fully recovered from the impact of the Covid-19 pandemic. In March 2025, passenger numbers were still 17 per cent lower than in March 2019.
Looking ahead, Schulte said that seat capacity at Frankfurt Airport is expected to increase by 5 per cent for the summer 2025 travel season.
Related topics:
- German Tourist Attacked by Angry Mob After Defying Sacred Mayan Temple Climbing Ban
- Our Lady of Fatima Statue to Visit Rome for Jubilee in October
- Powerful 6.7 Magnitude Earthquake Strikes New Zealand’s South Island, Triggering Coastal Warnings