Key Takeaways
• Germany raised aviation taxes by 19–25% on May 1, 2024, and security fees by 50% from January 1, 2025.
• Ryanair announced a 12% German summer capacity cut for 2025, withdrawing from several airports and reducing flights sharply.
• Lufthansa CEO warns these tax hikes threaten Germany’s aviation connectivity, raising fares and reducing flight options nationwide.
Germany’s aviation sector faces a critical turning point in 2025, as the Lufthansa CEO and other top airline leaders warn that steep tax and fee increases are forcing airlines to cut capacity, raise fares, and reconsider their presence in the country. These changes threaten not only the future of German aviation but also the country’s role as a global travel and business hub.
German Aviation Hit by Tax and Fee Increases
On May 1, 2024, Germany raised its aviation tax by 19–25%, with the new rates now ranging from €15.53 to €70.83 per passenger, depending on the route. Just months later, on January 1, 2025, aviation security fees jumped by up to 50%. These increases come on top of existing high costs for air traffic control and new requirements for airlines to blend sustainable aviation fuels (SAF) into their operations. The result is a sharp rise in the cost of flying to, from, and within Germany.
Airlines Respond with Capacity Cuts and Route Withdrawals
The impact of these tax and fee increases has been swift and severe. Ryanair, one of Europe’s largest low-cost carriers, announced a 12% reduction in German summer capacity for 2025. The airline is pulling out of airports like Dortmund, Dresden, and Leipzig, and slashing flights in Hamburg by 60% and Berlin by 20%. Eurowings, another major player, is discontinuing over 1,000 flights in Hamburg and has warned of further reductions. Condor and other airlines are also cutting back, saying the cost of operating in Germany is simply too high.
Lufthansa CEO Carsten Spohr has been especially vocal, warning that “the extreme rise in state costs in air traffic is leading to a further decline in supply.” He says more airlines are avoiding German airports or canceling important connections, which threatens Germany’s international connectivity and economic competitiveness.
Passengers Face Higher Fares and Fewer Choices
For travelers, these changes mean higher prices and fewer options. The average cost of economy flights in Germany during the first nine months of 2024 was 60% higher than in 2019. Domestic air travel is operating at just 50% of 2019 levels, and some regions outside Frankfurt and Munich have seen declines of up to 75%. For example, the total cost burden for a sample flight from Stuttgart to a European destination reached €4,926 at the start of 2025—a 143% increase from previous years.
Many passengers are now looking to airports in neighboring countries or switching to trains for domestic travel. However, this shift comes at the cost of international connectivity, as not all destinations are easily reached by rail.
Industry Leaders Sound the Alarm
The warnings from airline executives are echoed by industry groups and trade associations. Jens Bischof, President of the Federal Association of the German Aviation Industry (BDL) and CEO of Eurowings, points out that every departure from a German airport now incurs around €30 in government-imposed costs per ticket. These costs are passed directly to passengers, making German airports less attractive compared to those in neighboring countries.
Willie Walsh, Director General of the International Air Transport Association (IATA), has called the tax increases “policy madness” and warns that they will “damage the economy’s long-term growth.” IATA, BDL, and the Board of Airline Representatives in Germany (BARIG) have all urged the government to use aviation tax revenues to support the ramp-up of sustainable aviation fuel (SAF), as promised in the coalition agreement. So far, this has not happened.
Ryanair CEO Eddie Wilson has gone even further, threatening to cut another 1.5 million seats—about 10% of German capacity—for Summer 2025 if taxes are not reduced. He warns that this will further damage inbound tourism and Germany’s recovery from the Covid-19 pandemic.
Background: Why Are Taxes and Fees Rising?
Germany has long had some of the highest aviation taxes and fees in Europe. Unlike road and rail transport, which receive public subsidies for infrastructure, the aviation sector must cover the costs of air traffic control, security, and airport infrastructure on its own. The government’s recent tax and fee hikes were introduced to help close a federal budget gap and promote climate policy. However, critics argue that these measures are making German aviation less competitive and driving airlines to move their operations elsewhere.
The government’s coalition agreement promised to use aviation tax revenues to support the production of sustainable aviation fuel (SAF), which is seen as key to reducing the sector’s carbon footprint. However, this promise has not been fulfilled, and airlines are now required to blend more SAF into their fuel than is mandated by the European Union. This further increases costs and puts German airlines at a disadvantage compared to their European rivals.
Practical Implications for Airlines, Passengers, and the Economy
For Airlines:
– Airlines are reducing or eliminating German routes, relocating aircraft, or threatening further cuts if the tax regime is not changed.
– The competitive disadvantage is especially severe compared to neighboring countries with lower or no aviation taxes.
– Some airlines may use the threat of withdrawal as a negotiation tactic ahead of the February 2025 federal election, but the risk of lasting damage is real.
For Passengers:
– Airfares are significantly higher, and connectivity—especially for regional and domestic routes—is declining.
– Reduced flight options may push travelers to use alternative airports in neighboring countries or switch to rail for domestic travel, though international connectivity suffers.
– Some regions risk becoming isolated, with fewer direct connections to major cities and international destinations.
For Airports and the Economy:
– Airports are losing traffic and revenue, with some regional airports facing existential threats.
– The broader economy risks losing investment and international business links due to declining connectivity.
– Reduced air traffic could lead to job losses in the aviation sector and related industries, such as tourism and logistics.
Expert and Industry Analysis
Trade associations like IATA, BDL, and BARIG are urging the government to rethink its approach. They want aviation taxes reduced or abolished and revenues redirected to support SAF and decarbonization. They warn that current policies will lead to job losses and further market contraction. They also point out that aviation is uniquely burdened compared to other transport sectors, which receive public funding for infrastructure.
Aviation analysts say the situation is getting worse, with the gap between Germany and other European markets growing. Some believe that airlines’ threats to withdraw may be part of a negotiation strategy ahead of the February 2025 federal election, but they agree that the risk of lasting damage is real.
Future Outlook: What Happens Next?
Unless there is a policy reversal, more capacity reductions and airline withdrawals are expected throughout 2025. The outcome of the February 2025 federal election may influence future aviation policy, but there is no guarantee of change.
Environmental policy pressures are also mounting. From 2026, all EU aviation emissions will be subject to carbon pricing, adding further cost pressure. Germany’s stricter SAF mandates may continue to drive airlines to relocate unless supply and cost issues are addressed.
What Can Be Done?
Industry leaders and trade associations have proposed several solutions:
– Reduce or abolish aviation taxes to bring Germany in line with neighboring countries.
– Redirect aviation tax revenues to support the production and use of sustainable aviation fuel (SAF), as promised in the coalition agreement.
– Provide public funding for aviation infrastructure, similar to what is done for road and rail transport.
– Coordinate environmental policies at the EU level to avoid putting German airlines at a competitive disadvantage.
These steps could help restore Germany’s position as a leading aviation hub and support the country’s economic recovery.
Official Resources and Where to Find More Information
For readers seeking the latest updates on German aviation policy and industry developments, the following official resources provide authoritative information:
– Federal Association of the German Aviation Industry (BDL)
– International Air Transport Association (IATA)
– Lufthansa Group
– German Federal Ministry for Digital and Transport
These organizations regularly publish press releases, policy statements, and analysis on the state of German aviation.
The Human Impact: Stories from the Ground
Behind the headlines, these changes are affecting real people. Business travelers who once relied on frequent flights between German cities now face longer journeys and higher costs. Families planning vacations or visiting relatives abroad must budget more for airfare or consider alternative airports in neighboring countries. Workers at regional airports worry about job security as traffic declines and airlines pull out.
For example, a small business owner in Dresden who depends on regular flights to meet clients in other European cities now faces limited options and higher prices. A student in Hamburg who used to fly home for holidays finds that many direct routes have disappeared, making travel more complicated and expensive.
Broader Economic and Social Consequences
The decline in German aviation capacity has ripple effects throughout the economy. Reduced connectivity makes it harder for international companies to do business in Germany 🇩🇪, potentially leading to lost investment and fewer jobs. The tourism sector, already hit hard by the pandemic, faces further challenges as fewer flights bring fewer visitors.
Regional airports, which often serve as lifelines for smaller communities, are especially vulnerable. As airlines cut routes and passenger numbers fall, some airports may struggle to stay open. This could lead to job losses not only at the airports themselves but also in related industries such as hospitality, transportation, and retail.
Environmental Considerations
While the government’s goal of promoting sustainable aviation is widely supported, industry leaders argue that the current approach is counterproductive. By imposing higher taxes and stricter SAF mandates without providing adequate support, the government risks driving airlines to relocate to countries with less ambitious environmental policies. This could actually increase emissions if passengers travel longer distances to reach alternative airports.
Trade associations and environmental groups agree that a coordinated, EU-wide approach to decarbonizing aviation is needed. This would ensure a level playing field for airlines and help achieve climate goals without undermining the competitiveness of German aviation.
Looking Ahead: The Role of Policy and Leadership
The coming months will be critical for the future of German aviation. The outcome of the February 2025 federal election may determine whether the government reconsiders its approach to aviation taxes and fees. Industry leaders, including the Lufthansa CEO, are calling for urgent action to prevent further damage to the sector.
As reported by VisaVerge.com, the situation remains dynamic, with further developments likely as the year progresses. Stakeholders across the industry are watching closely, hoping for a policy shift that will restore Germany’s position as a leading aviation hub.
Actionable Takeaways for Readers
- Travelers: Check flight options early, compare prices across airports, and consider alternative modes of transport for domestic trips.
- Businesses: Monitor changes in flight schedules and costs, and plan for potential disruptions to travel and logistics.
- Industry Professionals: Stay informed through official channels and participate in industry discussions about policy changes.
- Policymakers: Consider the broader economic and social impacts of aviation taxes and fees, and engage with industry stakeholders to find balanced solutions.
For the most up-to-date information on German aviation policy, visit the Federal Association of the German Aviation Industry (BDL).
Conclusion
The warnings from the Lufthansa CEO and other industry leaders highlight the urgent need for a new approach to aviation policy in Germany 🇩🇪. Tax and fee increases have already led to reduced capacity, higher fares, and declining competitiveness. Without swift action, the country risks losing its status as a global aviation leader, with serious consequences for travelers, businesses, and the wider economy. The coming year will be decisive in shaping the future of German aviation.
Learn Today
Aviation tax → A government-imposed fee on airline tickets to fund public expenses related to aviation.
Sustainable aviation fuel (SAF) → Environmentally friendly fuel blended with traditional jet fuel to reduce carbon emissions in aviation.
Air traffic control → A service that manages aircraft movements to ensure safe and orderly flight operations.
Federal budget gap → A shortfall in government funds that requires increased revenues or spending cuts to balance.
Carbon pricing → A cost applied to carbon emissions to encourage reduction of greenhouse gases.
This Article in a Nutshell
Germany’s aviation sector faces severe tax hikes forcing airlines like Ryanair and Eurowings to cut flights and raise fares, risking connectivity and economic vitality. Industry leaders warn urgent policy changes are needed to support sustainable fuels and maintain Germany’s global aviation hub status in 2025 and beyond.
— By VisaVerge.com
