German Chancellor Friedrich Merz has signaled an intent to pursue further reductions to the country’s air traffic tax, highlighting concerns that high levies are driving passengers and carriers toward foreign airports.
Speaking at a business event on Tuesday, Merz pointed to his coalition’s prior decision to reverse a previous tax increase with effect from July 1. When asked during a question-and-answer session whether the air passenger levy might be abolished entirely, the chancellor indicated that additional adjustments are necessary.
“The second part must follow,” Merz said.
Elaborating on the rationale behind the proposed shift, the chancellor argued that the current fee structure harms national competitiveness. “We are not doing ourselves any favours with this levy, because air traffic in Germany is being diverted to locations outside the Federal Republic of Germany,” he noted. “I would like us to rectify this.”
Merz did not provide specific details regarding the timeline or the extent of the upcoming reductions. Any further rollbacks would carry direct implications for the federal budget, given the revenue generated by the aviation levy.
The initiative aligns with long-standing complaints from Germany’s aviation sector, which has repeatedly warned that high operational costs, including mandatory taxes and regulatory fees, place German airports at a competitive disadvantage within the European market.
