German Transport Minister Patrick Schnieder (CDU) has tempered expectations that the upcoming reduction in the air traffic tax will lead to lower ticket prices. “The reduction of the air traffic tax is intended to make the location more competitive, in order to become a serious player again at all,” he told the Funke newspapers on Friday. “That is the main goal” of the tax cut, which is set to take effect on 1 July 2026.
The airlines will then decide for themselves what offers to bring to the market. “For us it is important that they remain in Germany and station their aircraft here, and ensure a reliable route network to and from German airports in the interest of the business location of Germany and the passengers,” the minister said.
Schnieder noted that Germany’s passenger numbers have only reached 90 percent of pre-COVID levels, while other countries are at 110 percent. He stressed that the German aviation sector faces a competitiveness challenge.
The government agreed on the air traffic tax reduction during its coalition committee meeting in mid-November. Airlines responded cautiously to how this would affect ticket prices, noting it would depend on overall location costs. At the time, it was stated that the relief would cover “only about a tenth of the additional burdens that we have seen in state location costs since 2019.”
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