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Germany to Cut Air Passenger Tax From July 2026, Reversing 2024 Increase

Airlines hail roughly €350 million in annual relief as a competitiveness boost without pledging cheaper tickets.

Overview

  • The CDU/CSUSPD coalition agreed to restore the Luftverkehrssteuer to pre–May 2024 levels from 1 July 2026, delivering about €350 million a year in relief to the sector.
  • Current rates are €15.53 for short haul, €39.34 for medium haul and €70.83 for long haul per passenger, with consumer groups noting the cut would shave only a few euros off most European tickets.
  • Industry associations and airports welcomed the move as a first step, and Lufthansa said it is reviewing routes previously marked for reduction or cancellation.
  • Carriers declined to promise lower fares, citing still-elevated German location costs; the package also targets lower air-navigation charges in 2026 and funding for regional air traffic control.
  • Greens, the Left, environmental NGOs and consumer advocates criticized the cut as a climate setback and a giveaway as the Deutschlandticket becomes pricier, while Ryanair pressed for scrapping the tax sooner and entirely.