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Union Presses Airlines to Cut Fares Ahead of 2026 Air Travel Tax Rollback

Carriers face political pressure after the coalition approved a tax cut worth about €350 million, with industry groups declining to guarantee cheaper tickets.

Overview

  • The Union–SPD coalition agreed to roll back the May 2024 increase in Germany’s air travel tax from July 1, 2026, returning rates toward pre‑2024 levels and providing roughly €350 million in annual relief.
  • Airlines and airports welcomed the move as a competitiveness boost, with Lufthansa and others reviewing previously threatened routes, but the BDF said any fare impact depends on wider cost pressures.
  • CSU transport politician Stephan Stracke urged carriers—especially Lufthansa—to lower prices and restore connections even before the tax change takes effect.
  • Opposition parties, climate groups and consumer advocates criticized the plan as socially unfair and harmful to climate goals, noting most Europe tickets would see at most about €7.73 in tax relief and contrasting it with rising Deutschlandticket costs.
  • Alongside the tax cut, the government plans to reduce air traffic control fees starting in 2026 and target more than a 10% fee drop by 2029, introduce a temporary industrial power price from 2026 to 2028, and faces Ryanair’s demand to abolish the levy entirely from January 2026.