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Germany to Cut Air Ticket Tax by €350 Million From July 2026

Berlin casts the rollback as a bid to shore up airline competitiveness after the 2024 hike, with foregone receipts booked in the transport budget.

Overview

  • The Merz government will reduce the air-travel ticket levy by €350 million starting 1 July 2026, partially reversing last year’s increase.
  • Climate advocates, including Greenpeace’s Martin Kaiser and activist Luisa Neubauer, criticized the move as a misguided signal during COP30 in Belém.
  • Aviation groups welcomed the decision, with airport association ADV calling it the start of a turnaround and Lufthansa saying the government recognizes the sector’s strain.
  • Officials and industry cite steep increases in aviation taxes and fees since 2019, including the 2024 rise, as factors driving routes and airline activity away from Germany.
  • The coalition said the resulting revenue shortfall will be logged in the transport budget, and it coupled the step with plans for a subsidized industrial power price and new reserve gas plants.