Germany aviation recovery lags Europe. Higher passenger tax will not help
"The German aviation market is broken and urgently needs to be repaired if it is to grow again", says Ryanair Group CEO Michael O'Leary.
He blames German aviation taxes and fees, which are "among the highest in Europe" and laments planned further increases.
Germany's Federal Cabinet has approved a 22% increase in aviation tax per passenger from 1-May-2024, subject to ratification by the Bundestag.
Lufthansa Group CEO Carsten Spohr is also critical of the levies on aviation in Germany, which are holding back its recovery.
Germany's post-COVID capacity recovery is behind Europe's, and is the weakest among Europe's top five nations. In the German market, German airlines' capacity as a percentage of 2019 levels does not match its leading rivals.
In addition to high costs, weak GDP growth in Germany and government plans to cut funding for sustainable aviation fuel will add to airline concerns.
It is not a good time for an increase in aviation taxes.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.