German lawmakers in the Bundestag on Thursday voted in favor of a proposal to cut aviation taxes, raising hopes the move could make flying a little cheaper in the country. If it is approved by the Bundesrat, the upper house of parliament, the tax will fall from July 1 to the level it was before the last increase in May 2024.
Depending on the length of the flight, the tax will be reduced to between €2.50 and €11.40 ($2.90 to $13.25) per flight.
This measure is expected to reduce federal tax revenues by approximately €350 million per year.
“Of course, we are grateful for this sign of reversing the latest tax increase, but this is not a sign of change yet,” Kay Lindemann, Lufthansa Group representative for policy and regulation, told DW.
He pointed out that aviation taxes are only a part of the total tax burden, which has doubled in Germany since 2019.
“If we put too high a tax burden in Germany, we will lose aircraft to other places because business conditions are more attractive there, and that will result in a loss of economic value.”
But some experts warn that the tax cut will not have any meaningful impact on ticket prices.
“The state is giving up revenue, but passengers will not get any tax cuts,” said Gerald Wiesel, founder and CEO of Hamburg, Germany-based aviation consulting firm Airborne Consulting.
According to the plan, aviation tax for domestic and European flights as well as other short-haul flights will be reduced from €15.53 to €13.03. For medium-haul flights (destinations 2,500 to 6,000 kilometers away), the tax will be reduced from €39.34 to €33.01, while for long-haul flights, it will be reduced to €59.43 instead of €70.83.
However, energy costs have risen sharply since the outbreak in Iran in late February. “The recent surge in kerosene prices has forced us to suspend about 1% of our least profitable routes,” Lindeman said.
Aviation tax – a boon for the budget
“The current cut in aviation tax is not enough to compensate for the competitive disadvantage caused by government-imposed costs compared to other European countries,” the Federal Association of the German Aviation Industry (BDL) said in a statement.
These burdens are reflected in the modest growth rate of the industry.
Data compiled by the German Federal Statistics Office (Destatis) shows that 84 million passengers subject to aviation tax traveled in Germany last year – a big increase from 62 million in 2022, but still below the 96 million recorded in 2019.
However, tax revenue has exceeded recovery, as income from the aviation levy has almost doubled since its introduction in 2011, rising from €963 million to €2.1 billion last year.
“The aviation tax has become a fixed part of budget planning not only in Germany but throughout Europe,” said Frank Fichtart, an expert on tourism and transportation at the Worms University of Applied Sciences in Germany.
He said revenues generally flow into the national treasury, which is why it is possible to reduce taxes, but “compensation must come elsewhere” – a tall order given strained government finances.
Old fleet, increasing demand
While traveler taxes are “an important factor,” Feichert said they are “not the only factor affecting the attractiveness of a location.” Along with taxes, airlines are also facing increasing operational headaches, he said.
1st December 2024Aviation industry group IATA reports Warned of a “record high” backlog (cumulative number of unfulfilled orders) for new aircraft of 17,000 globally.
“At the current delivery rate, it will take 14 years to complete, which is twice the average backlog of six years for the period 2013-2019,” the report said.
The report said the average age of the global commercial aircraft fleet has reached 15 years – the highest in aviation history – while the industry is also struggling with a long-term pilot shortage.
The crisis is hitting Europe’s budget carriers particularly hard, Wiesel told DW. Ryanair has approximately 400 aircraft on order – 100 for replacement and 300 for development. “The same applies to EasyJet.”
He argues that until those deliveries are completed, airlines will “concentrate precious capacity where profitability is highest.”
German airports hit by airline cuts
While the two budget airlines have cautiously welcomed the German aviation tax cut, their strategies are already reshaping the market.
EasyJet plans to increase seat capacity by only 2-4% in 2026 – well below its group-wide target of around 7%.
Meanwhile, Ryanair has canceled flights in Germany. The airline announced in late April that it would close its base at Berlin Airport, and halve the number of flights to the German capital from this autumn. There will be 44 fewer flights from Cologne/Bonn airport in western Germany.
Nevertheless, Germany remains Europe’s largest aviation market – too big for the major carriers to ignore. Wiesel predicted that when the aircraft backlog was resolved, “Ryanair will be back.”
“It will not leave [German flag carrier] Lufthansa with its own field,” he said.
This article was originally published on December 7, 2025. It was updated on May 21, 2026.