Air travelers are set to benefit from a reduction in ticket taxes of up to 11.40 euros. This follows a draft bill initiated by the Federal Cabinet on Wednesday. Specifically, the levy is to be reduced by 2.50 euros for short-haul flights, 6.33 euros for medium-haul routes, and 11.40 euros for long-haul flights. The Finance Ministry has called on airlines to pass these savings on to passengers.

The regulation is scheduled to take effect on July 1, 2026. The coalition of CDU, CSU, and SPD is thus reversing the ticket tax increase implemented on May 1, 2024, as agreed upon in the coalition treaty.

The federal government anticipates a significant shortfall in tax revenue due to the reduction. For the second half of 2026, this is estimated at 170 million euros. In subsequent years, the treasury is expected to forgo up to 355 million euros annually. From 2027 onwards, these losses are to be offset by budget cuts within the Federal Ministry of Transport.

The aviation tax, which can be passed on to passengers, is part of the state-imposed location costs at German airports, alongside airport charges and fees. Whether flights will ultimately become cheaper for passengers depends on whether airlines such as Lufthansa, Ryanair, and Easyjet pass on the lower costs. The aviation lobby described the government's plans as a step in the right direction but is calling for significantly more measures to reduce location costs in Germany.

(Report by Holger Hansen and Klaus Lauer, edited by Sabine Wollrab. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)