Germany intends to reverse increase in air traffic tax, Bild reports

BERLIN (Reuters) -Germany intends to reverse an increase in air traffic tax unpopular with airlines, something which will be discussed by the coalition government as part of budget considerations for 2026, the Bild newspaper reported on Monday.

International airlines have long complained that flying to and from German airports is too expensive and threatened to reduce their presence in the country, with budget carrier Ryanair among the loudest critics.

“The increase in air traffic tax must be cancelled, and charges at German airports must also be reduced,” the newspaper quoted Christoph Ploss, the government’s tourism policy coordinator, as saying.

The transport ministry will push for a reversal of the tax increase, according to the report.

Shares in Lufthansa spiked briefly after the news by 2.2%.

The coalition government under Chancellor Friedrich Merz has vowed to ease the financial burden on aviation, including by reversing the higher air traffic tax, but had not given a timeline in its coalition agreement.

German Finance Minster Lars Klingbeil is expected to present the draft 2026 budget next week, with companies watching closely for promised relief despite pressure on state coffers from ramped-up spending on defence and economic uncertainty.

The air traffic tax increase came into effect in May 2024, raising the surcharge for short-haul flights from 12.48 euros per ticket to 15.53 euros.

Ploss said the previous government, led by the Social Democrats who are now junior partners in the current coalition, had made holidays more expensive for millions of Germans.

“A well-deserved holiday in Mallorca must not become unaffordable,” he added.

A reversal “would be a first and urgent step in the right direction,” Ralph Beisel, head of the ADV airports association, said in a statement to Reuters. “A reorientation of aviation policy is needed in our country.”

(Reporting by Klaus Lauer and Rachel More; editing by Matthias Williams and Christina Fincher)

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