Could a new tax on air travel be coming to Germany? Members of Germany's main political parties are considering the option. In fact, the idea of doubling the tax on short-haul flights in an effort to cut pollution is on the table.
It turns out that Germany is lagging behind when it comes to fulfilling what was pledged under the Paris Agreement. Some politicians have been anything but shy when it comes to letting the public know that they'd like to see the tax rate for domestic flights doubled. Germany's current tax on domestic flights is €7.40. Germany isn't the only European country with its eye on raising taxes for flights. France unveiled new taxes totaling as much as €18 for French flights over the summer. The news caused airline shares in France to dip.
The good news is that newer airplanes being used in fleets across Europe are more efficient than previous models. However, gains that are being made on that front are being erased by the growth of the airline industry. Pollution is increasing as more and more people are traveling by plane. In fact, both Lufthansa and Ryanair reported record carbon emissions in 2018. The increases happened despite the fact that both airlines recently made the leap to new jets that are considered to be more fuel efficient.
Ticket taxes in Germany have already forced one airline to scale back service in the country. You may recall that Ryanair left the German market after the first ticket tax was rolled out back in 2011. Industry analysts believe that higher taxes on airline tickets will actually increase Lufthansa's market share in the country. More will be known about the future of airfare taxes in Germany after a special meeting takes place on Sept. 20.