Rising ticket prices, line closures… What effects could air taxation have?

More and more expensive plane tickets, a reduction in air traffic and closed lines. Airline professionals fear the cascading effects of increased taxation for their sector. In search of funds to reduce a larger-than-expected budget deficit, the government included in its 2025 finance bill (PLF) a tripling of the solidarity tax on plane tickets (TSBA), also called tax Chirac, and an increase in taxation of private jet passengers, for a total of one billion euros.

The Ryanair company threatened on Wednesday to stop serving ten French regional airports from January 1, 2025 if this increase in taxation of the air sector, included in the 2025 budget with entry into force on January 1, was adopted. “Ryanair is currently reviewing its French programs and expects to reduce capacity to and from French regional airports by up to 50% from January 2025 if the French government continues with its short-sighted plan”declared the commercial director of the Irish low-cost carrier, Jason McGuinness, quoted in a press release.

Ryanair currently serves 22 airports in France, including two close to the Paris region: Beauvais (Oise) and Vatry (Marne). The regional airports affected by the end of operations would therefore be among the 20 others. Ryanair did not cite any on Wednesday. The company also did not wish to say to what extent its total supply in France would be reduced if it carried out its threat.

An increase of 2 to 40 euros in economy class

According to the National Federation of Aviation and its Trades (Fnam), the increase in the TSBA “could lead to a reduction in traffic in 2025 by 2% on average across the entire territory”. This decline could be even greater at certain airports, particularly those welcoming low-cost airlines whose customers are more price sensitive, according to Fnam.

This increase in taxation will also be passed on by the companies in the price of tickets. The increase could range from 2.60 euros per passenger to 40 euros for economy classes. In detail, the tax for economy classes would increase from 2.60 euros currently to 9.50 euros for European destinations, from 7.5 to 15 euros for intermediate destinations and from 7.5 to 40 euros for distant destinations. , from 5500 kilometers. For business classes, prices would increase from 20 to 30 euros for European destinations, from 63 to 80 euros for the intermediate category and from 63 to 120 euros for distant destinations, details LCP (new window).

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“I don't think that, for flights in Europe, a tax of 9.50 euros calls into question the balance. Just like 120 euros on a Paris-New York in business class, priced at several thousand euros”estimated the Minister of Transport François Durovray at the end of October in an interview with The Tribune (new window). If the increase in the tax on flights has not yet been adopted, the company Air France has already been applying it since the end of October (new window) for flight reservations made from January 1, 2025.

“Asphyxiate air transport”

Beyond the increase in prices for passengers, another subject was also highlighted by officials of the country's air sector: the risk of loss of competitiveness for France, the world's leading tourist power. According to Fnam, this “would, without taking into account the catalytic effects on the rest of the French economy, lead to the destruction of 11,500 jobs and a loss of tax revenue of more than 500 million euros for the State”.

“This billion euros in taxes will suffocate air transport and in turn threaten jobs in the sector”warned Karine Gély, president of the powerful National Union of Line Pilots (SNPL), on November 14, at the origin of a call for a strike that day. “If these taxes are applied, it will be a disaster for France”also warned the director general of the International Air Transport Association (Iata), Willie Walsh, in a statement sent to AFP in October.

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The political journey of this criticized tax is not yet over. On November 8, MPs approved the increase in taxation on air transport proposed by the government, however limiting its duration to one year and excluding overseas and Corsica from the system. This government amendment was, however, rejected with the rest of the “revenue” part of the finance bill by the National Assembly on November 12. The government is now turning to the Senate, where this measure will be examined at the end of November.