For years, German governments – whether led by Conservatives or Social Democrats – have viewed aviation as a cash cow. Whenever the government needed money – and when doesn’t it? – it simply raised taxes or fees. The result, after many years of doing this, is that the once high-yield cow has now stopped producing milk – figuratively speaking.
This decline is evident when looking at the traffic figures. In 2025, for example, around 207.2 million passengers took off from or landed at German airports. This represents a 3.9% increase compared to 2024, but remains 8.6% below the pre-COVID level of 2019. The reasons for this trend include not only the multiple increases in air traffic management fees, security taxes and environmental compliance fees, but also the shift toward rail travel. In combination, this has led to a reduction in revenues for airlines and airports, at the same time as costs continue to increase due to higher wages or additional energy expenditures, for example.
Air traffic tax reduction – just a drop in the ocean
As far as air traffic taxes are concerned, prima facie, at least the spiral’s upward trend will be halted come 01JUL26. This was decided by the Berlin government after years of fierce debates between politics and industry. However, the cost level will only be frozen, not lowered. In contrast, airlines are demanding additional mitigation measures to remove the financial pressure on the industry and make flying affordable again for operators and their customers.
In addition to internal financial woes, the situation is currently being exacerbated by the blockade of the Strait of Hormuz, causing kerosene prices to skyrocket. While Lufthansa, Austrian Airlines, Swiss, and Brussels Airlines have little influence on global pricing structures, their national governments could implement cost-cutting measures to help the industry weather the current storm to a certain degree. They have not done this, so far.
Hormuz crisis ups cost pressure
According to Michael Hoppe, Chairman and Executive Director of the Board of Airlines Representatives in Germany (BARIG), it is about time that the Berlin government relieves the aviation industry of the major cost burden that has been holding it back for years: “In view of the current geopolitical challenges, which have a significant impact on air travel in particular, the massive problem of far too high state-imposed costs in Germany remains. These costs have not only slowed down growth but have also resulted in traffic being shifted to other European countries for years. Capacity for passenger and cargo traffic remains under pressure. Connectivity is severely impacted, and so is Germany’s highly export-oriented economy.” BARIG admits in a release that the Berlin politician’s decision to lower the air traffic tax as of 01JUL26, is a step in the right direction – but one that is far too small, it criticizes. The announced reduction does not even bring the tax back to the level prior to the last increase in 2024, as promised in an agreement signed a year ago by the ruling parties: Conservatives and Social Democrats.
€4,531 versus €2,326
Similarly, the German Airports Association (ADV) is also exerting pressure on the government to cut costs in aviation, as its helmsman, Ralph Beisel explains:
“The decision to adjust the air traffic tax was long overdue, but falls short of our expectations because the reduction is lower than promised. The newly set tax rate of €13.03 is 55 cents higher than the actual tax rate from 2024 (€12.48). The resolution of the coalition committee, from last November, had announced the complete reversal of the most recent increase in the air traffic tax. This is particularly disappointing for airlines that wish to fly to a German airport from abroad. Against this backdrop, non-European airlines will be considering whether they should include an airport in Germany in their network.”
Beisel illustrates: An aircraft taking off from a German airport is charged €4,531 (average government fees); in other European countries, the regulatory fee for a pan-European flight averages €2,326.
Politicians must take further action
Efficient airports – whether large or small – ensure the international connectivity of cities and a country’s economy. “If government taxes are reduced, it benefits not only the aviation industry, but also enterprises, tourism and the entire transport sector, states ADV in a release.
Ralph Beisel concludes his remarks by addressing the Berlin government directly, asking it to take further actions: “The planned tax cut is a necessary and appropriate step. But further reductions, for example in air traffic control or aviation security fees, must follow.”
