German Airlines Sound Alarm on Rising Government Costs, Hampering Recovery
The German airline industry has issued a stark warning to the government, urging it to reconsider imposing further financial burdens that would drive up ticket prices in the country. According to calculations by the industry association BDL (Bundesverband der Deutschen Luftverkehrswirtschaft), an additional €1.2 billion in taxes and state fees will be added to the existing tax burden of €3.3 billion in the current year.
BDL President Jens Bischof highlighted that each flight departure from a German airport would incur government-imposed costs of €30 per ticket. Inevitably, these costs will be passed on to passengers, Bischof emphasized.
In a plea to the incoming German government, the CEO of Eurowings called for a reduction in operating costs for airlines and airports. To foster new growth, he urged the government to repeal the air traffic tax introduced last year and abandon plans to implement a national blending quota for e-kerosene starting in 2026.
"In 2025, the industry will face an additional €1.2 billion in costs solely due to the increased air traffic tax, rising air traffic control fees resulting from COVID-19 legacy costs, high security screening expenses, and the mandatory use of sustainable fuels," Bischof explained. In the previous year, state-imposed operating costs in the German aviation sector amounted to approximately €3.3 billion.
The industry identifies these substantial government levies as the primary reason for the sluggish recovery and declining connectivity of air travel in Germany compared to Europe. Domestic flights and direct connections operated by low-cost carriers, in particular, have not recovered at the same pace as in the majority of other European countries following the end of the COVID-19 crisis.
While air traffic supply at German airports reached 86% of pre-pandemic levels last year, it soared to 104% in the rest of Europe. This gap is expected to widen, with the ratio projected to be 91% to 109% in the coming summer season. "Europe is experiencing unprecedented air travel demand, but not Germany," Bischof stressed.
Foreign airlines are bypassing the German market, while domestic carriers are scaling back their offerings. Lufthansa’s recent actions at Frankfurt Airport, Germany’s largest, serve as a prime example. In January, the airport handled 3.9 million passengers, a 3.1% decline year-over-year. Airport operator Fraport attributed this drop to Lufthansa’s reduced flight offerings.
Call for Government Action
To reverse this alarming trend, the airline industry implores the government to implement measures that would alleviate the financial burden it faces. Specifically, it advocates for:
- Repealing the air traffic tax: This tax, introduced last year, has significantly increased operating costs for airlines.
- Abandoning the e-kerosene blending quota: The planned national blending quota for e-kerosene would force airlines to purchase more expensive sustainable fuels, further driving up costs.
- Reducing air traffic control fees: These fees, which have been increased to cover COVID-19-related costs, should be gradually reduced as the industry recovers.
- Optimizing security screening processes: The industry believes that security screening could be streamlined to minimize costs without compromising safety.
The airline industry emphasizes that these measures are crucial to fostering a competitive and sustainable aviation sector in Germany. By reducing government-imposed costs, the sector could drive down ticket prices, stimulate demand, and bolster economic growth.
