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Germany slashes air passenger tax—but don't expect cheaper flights

A bold tax cut aims to revive Germany's aviation sector—but soaring fuel costs mean travellers won't see fare drops. Can this move save struggling hubs?

The image shows a graph depicting the number of airline passengers in the United States from 2019...
The image shows a graph depicting the number of airline passengers in the United States from 2019 to 2021. The graph is accompanied by text that provides further information about the data.

Germany slashes air passenger tax—but don't expect cheaper flights

The planned reduction in Germany's air passenger duty, set to take effect on July 1, will not be enough to offset rising ticket prices driven by the energy crisis, according to Anja Karliczek (CDU), chair of the Bundestag's Tourism Committee.

Speaking to the Rheinische Post (Monday), Karliczek acknowledged the severe challenges facing the travel industry. "Of course, these are difficult times for the sector once again," she said. "And ticket prices will inevitably climb even higher. We shouldn't fool ourselves about that."

While the cut in air travel taxes represents an initial step to prevent German airports and airlines from falling further behind their foreign competitors, she stressed that the country needs attractive hubs—"including for tourists visiting us." Unlike national operating costs, soaring kerosene prices are not a distortion of competition that disproportionately burdens German airports but rather a market reality that all airlines must factor into their calculations.

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