Geneva — The International Air Transport Association (IATA) has swiftly condemned Germany's plan to tax aviation fuel, calling it "a mistake" that could undermine the country's economic competitiveness.
Imagine a fully loaded aircraft poised for takeoff, ready to connect passengers across continents and fuel trade and tourism. Now picture an invisible drag making that ascent harder—precisely the risk IATA warns Germany's proposed jet fuel levy could create.
"If Germany faces structural deficit issues, weakening competitiveness by raising air transport costs is entirely counterproductive," said Rafael Schwartzman, IATA's Regional Vice President for Europe. "In 2010, the German government wisely avoided this error by rejecting a similar tax, recognizing its potential economic harm."
Schwartzman emphasized that Germany's aviation sector already bears high costs. "Travelers already struggle with expensive infrastructure, ticket taxes ranging from €13 to €56, and rising security fees. Should Berlin need additional revenue, it should treat aviation as an economic catalyst—not a cash cow."
Four Key Concerns
IATA identifies multiple cascading effects from the proposed tax:
- Competitive disadvantage: German carriers would lose ground to foreign airlines, reducing passenger and cargo volumes—potentially damaging tourism and trade.
- Economic headwinds: Aviation supports thousands of German jobs and significant GDP contributions. Fuel taxes could stifle this growth engine.
- Consumer impact: Airlines would likely pass costs to travelers through higher fares, suppressing demand for air travel.
- Environmental limitations: The tax may simply divert flights elsewhere without reducing emissions. IATA advocates investing in Sustainable Aviation Fuel (SAF) and backing global carbon programs like CORSIA instead.
A Call for Alternatives
IATA urges Berlin to reconsider and proposes alternative measures:
- Reduce Germany's notoriously high aviation infrastructure costs
- Eliminate ticket taxes to stimulate demand
- Fund SAF development and adoption
- Support international emissions frameworks like CORSIA
The association stresses that airlines are actively working toward net-zero emissions through technological innovation and operational efficiencies. Rather than punitive taxation, IATA seeks government partnership to balance fiscal needs with sustainable aviation growth.