Flying to and from Germany may get cheaper from July 2026

The German government has announced that it will reduce the country’s aviation tax from July 2026. Flying to and from German airports may get cheaper as a result, but it’s not guaranteed.

German government to reduce aviation tax from July 2026

Germany’s CDU/CSU-SPD government has announced that it will reduce the country’s aviation tax (Luftverkehrsabgabe) from July 1, 2026. Chancellor Friedrich Merz (CDU) hopes the plan will boost Germany’s ailing economy by encouraging budget airlines to increase operations at German airports.

The aviation tax was initially introduced by the CDU-FDP coalition in 2011 and increased by the SPD-Greens-FDP government in May 2024. The so-called “traffic light coalition” increased taxes on each passenger flying within Germany or to another EU member state from 12,73 euros to 15,53 euros. For trips further afield, more than 6.000 kilometres, tax per passenger increased from 58,06 euros to 70,83 euros.

Airlines passed these costs on to passengers by increasing ticket prices. Many airlines were staunchly critical of the increased tax, with Ryanair making multiple announcements that it would cut services from German airports. Most recently, the Irish budget airline said it would cut 24 flight routes from nine German airports and called on the government to scrap the tax entirely.

While airlines have focused on criticising Germany's aviation tax since it was increased, many EU countries have similar taxes, and tax airlines more. The Netherlands charges the most, at 29,05 euros per person in 2024. Merz’s decision to cut the Luftverkehrsabgabe is expected to lose the German government 350 million euros in annual tax revenue, a loss that the chancellor says has been accounted for in the coming annual budgets.

Environmental organisations and the Greens have been deeply critical of the decision. "The reduction in the aviation tax shows that climate protection in transport is not a high priority for the coalition,” said Jens Hilgenberg, transport expert at the German environmental protection organisation BUND. Greenpeace chief Martin Kaiser called the move a “fatal signal”.

Will plane tickets to and from Germany get cheaper?

Airlines chose to increase ticket prices after the aviation tax was increased, but they are not obliged to reduce ticket prices when the tax is decreased. Passengers will have to wait until July 2026 to see if flying to and from Germany gets cheaper.

While airlines operating in Germany aren’t charged VAT or kerosene tax, rail companies are still charged both. This is one reason why rail travel in Germany and Europe is still so much more expensive than air travel. According to a 2024 Greenpeace study, which analysed 100 European routes, flying is cheaper than train travel in 60 percent of cases.

In the background, the number of long-distance daytime rail services and night trains connecting European cities are growing. In May, the European Commission announced a pilot project dubbed the “European Metro”, which it hopes will reduce demand for short-haul flights. So far, only a new night train connecting Berlin, Munich, Rome, and Naples has been announced as part of the project.