IATA Criticizes Germany's Aviation Taxes Increase

The International Air Transport Association (IATA) has strongly criticized the German government's decision to increase passenger aviation taxes, which came into effect on May 1. The increase ranges from €15.53 ($16.77) to €70.83 ($76.50) per passenger, depending on the route, and IATA argues that this will hamper the industry's efforts to decarbonize while making Germany less competitive.

IATA's Director General, Willie Walsh, expressed concerns about the increased taxes, noting that international passengers in Germany are still 20% below pre-pandemic levels, and the country's aviation recovery has been one of the slowest globally. In a statement on May 2, Walsh said that the German government seems to have an unhealthy obsession with aviation taxes and that their measures will hurt the economy.

Walsh also pointed out that green taxes often end up in the general revenue pool, instead of being used for environmental purposes. IATA cited a survey where 75% of air travelers in Germany said that taxation is not the way to make aviation sustainable, and 72% agreed that green taxes are just government greenwashing.

Aviation Industry's Concerns

IATA's criticism emphasizes that these taxes undermine the industry's efforts toward net zero emissions. The German government's original commitment to use aviation tax revenue for sustainable aviation fuel production has not been upheld, which further exacerbates the situation. Last week, IATA released data showing a 13.8% increase in global passenger demand in March compared to the previous year.