The French Government is planning to raise aviation taxes to compensate for the country’s national debt, and European airlines and airports are concerned with the consequences. France’s national debt is currently around €3.228 trillion.
Willie Walsh, IATA’s Director General, warned strongly against the plan: “If these tax proposals are implemented it will be a disaster for France. You cannot tax yourself to prosperity. Aviation is a driver of employment and prosperity, as well as a proven accelerator of growth in other parts of the economy.”
A4E (Airlines for Europe) and ACI Europe (Airports Council International), who represent many airlines and airports, have urged the Government not to increase taxes, stating several concerns regarding the impact it will have on the aviation sector and the national economy, the conflicts it will create with decarbonisation programmes, and case studies of other countries, such as Sweden and Ireland, having recently reduced aviation taxes due to the negative impact on the economy.
“Raising aviation taxes is the poster child of short-term thinking in politics. If confirmed, this new plan would inadvertently weaken the competitiveness of French aviation, penalise citizens and, ultimately reduce the sector’s economic contribution,” said Olivier Jankovec, Director General of ACI EUROPE. “As we have repeatedly pointed out, every 10% increase in direct connectivity leads to a 0.5% rise in GDP per capita. The French Government would de facto choose quick cash over durable economic competitiveness.
He continued: “This plan is even more concerning given the aviation sector’s ongoing transformation to meet ambitious net-zero goals – with the recent Draghi report acknowledging that European aviation will need €61 billion every year to get there. If anything, more financial support from the government is what is required, not additional taxation.”
It was only in September of this year that Sweden announced the abolishment of aviation tax from July 2025, explaining that the tax negatively affected the competitiveness of Sweden within the air travel market, and had no real environmental impact.
“This proposal to increase French aviation taxes would be counterproductive, would fragment the single aviation market and would undermine the competitiveness of French aviation,” commented Ourania Georgoutsakou, A4E Managing Director. “Any short-term revenue gains the government expects would be far outweighed by reduced connectivity, poorer consumer welfare and would set back aviation’s decarbonisation efforts. Diverting funds from the industry through increased taxes ultimately means less investment in crucial decarbonisation measures.”
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