Chancellor Friedrich Merz’s cabinet approved the measure and forms part of the coalition agreement between the conservative bloc and the Social Democrats.
Tax Reduction Reverses 2024 Increase
The move will lower air traffic tax rates back to the levels in place before the May 2024 increase introduced by the previous government.
International airlines had repeatedly criticised Germany’s aviation cost structure, warning that high taxes, airport fees and operational charges were making German airports less competitive compared with other European markets.
Lower Charges For Short, Medium And Long-Haul Flights
Under the revised system, the air traffic tax imposed on airlines operating from German airports will be reduced by:
• €2.50 per ticket on short-haul flights
• €6.33 per ticket on medium-haul flights
• €11.40 per ticket on long-haul flights
The changes will officially take effect on 1 July 2026.
Government Responds To Airline Pressure
Airlines and aviation industry groups have long argued that Germany’s high aviation taxes were discouraging carriers from expanding operations in the country.
Several airlines had threatened to reduce capacity or shift aircraft to lower-cost European markets if operating conditions failed to improve.
The tax is charged directly to airlines in addition to airport fees and other operational costs.
Government Expects Significant Fiscal Impact
According to government estimates, the reduction will cost the federal budget approximately €170 million during the second half of 2026.
Annual costs are projected to reach around €355 million in subsequent years.
Germany Seeks To Strengthen Aviation Competitiveness
The decision reflects growing concern within Germany over the competitiveness of its aviation market as airlines increasingly focus growth on lower-cost European hubs.
German airports and airlines have faced pressure from rising operational expenses, environmental levies and volatile fuel prices in recent years.
