German Coalition Considers Aviation Tax Cuts to Address Industry Challenges

Proposals to roll back 2024 tax increases and ease regulations are under review as high costs hinder Germany's aviation recovery.

Germany's aviation sector faces some of the highest operational costs in Europe, with taxes and fees rising from €3.3 billion to €4.5 billion in 2025.
Passenger volumes in Germany remain below pre-pandemic levels, recovering to only 80% compared to nearly 100% across the EU.
Union and SPD coalition negotiators are evaluating proposals to reduce the air traffic tax and eliminate the e-fuel blending quota, though no final decisions have been made.
Airlines like Ryanair have cut routes from German airports, citing unsustainable costs, while domestic airlines struggle to expand under current conditions.
Munich Airport continues infrastructure investments, including a €70 million parking garage, while calling for a high-speed rail connection to enhance its competitiveness.