Cheaper flights in sight as German government plans to cut taxes on plane tickets

Flying looks set to get cheaper next year, after the German government announced it was pushing ahead with plans to reduce taxes on air fares. 

German government wants to reduce air traffic tax in 2026

Introduced in 2011 to reduce the number of flights and therefore emissions, the air traffic tax was significantly hiked in 2024 under the traffic light coalition government. Now, the CDU-led Ministry of Transport is planning to reverse the increase in the 2026 budget, Bild reports, making good on a promise enshrined in the CDU-SPD coalition agreement. 

"The increase in the air traffic tax must be reversed, and the fees at German airports must also be reduced,” the federal government’s Tourism Coordinator, Christoph Ploß, told Bild. “Otherwise, there will soon be even fewer flight connections at German airports than is currently the case."

Germany most expensive country to fly from in Europe

The CDU is arguing that the tax increase has made holidays more expensive for millions of Germans. The increase in May 2024 was significant, but not prohibitively so: the tax on short-haul flights rose from 12,48 to 15,53 euros per ticket, while on long-haul flights it rose from 56,91 to 70,83 euros. In 2024, the air transport tax brought in approximately 1,9 billion euros, RP reports.

However, what is more significant from the point of view of the coalition government is the impact the tax has had on airlines and airports in Germany. The higher taxes make it more expensive for airlines to operate flights in and out of the federal republic. The Lufthansa Group recently said that flying out of Germany is more expensive than in any other European country. 

This is significant when it comes to keeping Germany well-connected and competitive: Lufthansa has recently been forced to scrap multiple domestic flight connections due to unprofitability, while other airlines are reducing their services from German airports. "Flight connections from Germany to other holiday destinations will be cancelled due to the higher costs, just as flights from abroad to Germany will be cancelled,” Ploß warned.