Germany is considering a reversal of the air traffic tax hike introduced in May 2024, according to a report by Bild. The move comes amid growing pressure from airlines and concerns over high operational costs at German airports. The current coalition government plans to discuss the matter during the preparation of the 2026 budget.

The tax increase raised the surcharge for short-haul flights from €12.48 to €15.53 per ticket. This has been widely criticized by airlines, especially low-cost carriers like Ryanair, which claim that the added costs are making air travel to and from Germany less attractive. International airlines have also hinted at scaling back their operations in response to the high fees.

Christoph Ploss, the government's tourism policy coordinator, has been vocal in calling for a change. “The increase in air traffic tax must be cancelled, and charges at German airports must also be reduced,” he told Bild. He further noted that the tax hike made holidays more expensive for millions of Germans. “A well-deserved holiday in Mallorca must not become unaffordable,” he added.

Germany’s transport ministry reportedly supports the reversal and sees it as a step toward reducing financial strain on the aviation sector. The coalition government, led by Chancellor Friedrich Merz, has expressed a commitment to easing the burden on the travel industry, although no official timeline has been provided yet.

The announcement briefly lifted Lufthansa’s stock by 2.2%, reflecting positive sentiment from the market. Ralph Beisel, head of the ADV airports association, also welcomed the potential policy change. “A reorientation of aviation policy is needed in our country,” he said, calling the reversal “a first and urgent step in the right direction.”

German Finance Minister Lars Klingbeil is expected to present the draft budget for 2026 in the coming week. While economic challenges and increased defence spending are putting pressure on the national budget, businesses and industry watchers are closely monitoring the government's next steps in offering relief to the aviation sector.