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Germany to Cut Air Travel Tax in 2026, Minister Says Lower Fares Not Automatic

He casts the move as a bid to bolster the country’s aviation competitiveness by keeping airlines and routes based in Germany as traffic trails pre‑pandemic levels.

Overview

  • The Luftverkehrssteuer will be reduced from July 1, 2026, reversing the May 2024 increase and providing an estimated €350 million in relief.
  • Transport Minister Patrick Schnieder said the policy’s goal is competitiveness rather than a one‑to‑one pass‑through to ticket prices.
  • Germany’s passenger volumes are at roughly 90% of pre‑COVID levels compared with about 110% in some other countries, according to Schnieder.
  • Industry figures Peter Gerber and Lufthansa’s Jens Ritter indicated savings may be used to stabilize operations and preserve connections rather than immediately cut fares.
  • Lufthansa signaled further route reductions are off the table with the tax change, while CSU transport expert Stephan Stracke urged airlines to lower prices ahead of summer 2026.