Air sector: Ticket prices could soar in the event of high taxation

On Tuesday, the National Federation of Aviation and its Trades (Fnam) indicated that it expected to see the aviation sector be taxed by an additional billion euros in 2025, while France tries to reduce a budget deficit. higher than expected. The new governmentwhich must present its draft budget for 2025 on October 10, has not confirmed such a measure which, according to Fnam, would necessarily be reflected in the price of tickets.

“If these taxes are applied, it will be a disaster for France,” warned the director general of the International Air Transport Association (Iata), Willie Walsh, in a statement sent to AFP. “We cannot achieve prosperity by increasing taxes. The airline sector stimulates employment and prosperity, and it is proven that it boosts the growth of other sectors of the economy,” argued Mr. Walsh, whose organization claims to bring together 330 airlines from around the world.

Earlier in a joint press release, Airlines for Europe (A4E), which brings together the largest European airline groups including Air France-KLM, IAG, Lufthansa, Ryanair and easyJet, and ACI Europe, which defends the interests of more than 500 airports in the Old Continent, also expressed their “dismay” at the possibility of a tax increase.

Calling on France to “reexamine this project, which does not appear to be based on an in-depth economic impact study,” the two interest groups warned of the “significant damage” that such a measure would inflict “not only on aviation sector of the country, but also to the national economy, its competitiveness and its attractiveness.

In addition, “these tax increases will pose obstacles on the road to effective decarbonization of aviation, by reducing the sector’s ability to finance the investments” necessary, according to A4E and ACI Europe. The sector is committed to carbon neutrality by 2050.

Conversely, the non-governmental organization Transport & Environment (T&E), based in Brussels, estimated on Wednesday that “the increase in the tax on plane tickets envisaged by the government is a measure which goes in the right direction for decarbonization of the sector.

“Increasing this tax will help control the increase in air traffic,” welcomed Jérôme du Boucher, aviation manager at T&E France, quoted in a press release. “It also compensates part of a shortfall in tax revenue for the French State, which we estimate at 6 billion euros in 2025, caused by the numerous exemptions enjoyed by the sector,” argued Mr. du Boucher.

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