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Germany Moves to Cut Air Ticket Tax From July as Finance Ministry Draft Lands

Airlines immediately challenged the draft as insufficient compared with the rates passengers actually faced in 2024.

Overview

  • The draft would lower the Luftverkehrsteuer from 1 July 2026 to €13.03 on short-haul tickets, €33.01 on medium-haul, and €59.43 on long-haul.
  • The Finance Ministry estimates a revenue loss of about €185 million in 2026, rising to roughly €355 million by 2030, with savings planned in the Transport Ministry budget from 2027.
  • Ryanair accuses the government of breaking its promise, arguing the proposal does not restore the tax to the actually applied May 2024 levels.
  • The German airlines’ association BDL urges reinstatement of the previous ETS-linked reduction mechanism to balance tax burdens with EU emissions trading costs.
  • Whether ticket prices fall remains uncertain because airlines decide if they pass on the cut, and higher fuel costs are pressuring fares.